New phone scam hits bank customers

Friday, 30 January 2009 11:47

Brits are being warned about a new phone scam hitting customers, as fraudsters call cardholders to get their three digit security codes and card details.

People across Britain have been targeted with criminals calling them pretending to be from security departments at their bank, Visa or Mastercard and saying suspicious transactions have been made.

The fraudsters, who may already have a victim's address and card number, are trying to find out the three-digit security code on the back of the victim's card.

"The calls follow a similar pattern, with the fraudster claiming to be the bank and saying they have spotted a suspicious transaction on the account," said Mark Bowerman, at the payments association APACS.

"It is tricky as they are mimicking what the banks do."

Mr Bowerman explained the fraudsters are warning about fake transactions worth hundreds of pounds and lower a victim's guard by saying they need the security code - and any other information they can get - to make a refund.

If the security code is revealed, a fraudster can use it to make purchases over the telephone or internet using the victim's card details.

"If someone calls you, you have to think 'how do I know it really is my bank?'," advised Mr Bowerman.

"The wise thing to is put the phone down and call the bank on a number you already know. I can take a minute to get through to the right department, but it better safe than sorry."

He added if you think you have already been a victim of this scam, you should speak to your card company as soon as possible.

"The problem is at an early stage, but it is starting to happen more often, so we want to nip it in the bud," Mr Bowerman said.

APACS advice to consumers is:

• Don't let cards or card details out of your sight when making a transaction.
• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.
• Register your cards with Verified by Visa or MasterCard SecureCode.
• Do not keep your passwords, login details and PINs written down.
• Do not disclose PINs, login details or passwords in response to unsolicited emails or telephone callers claiming to be from your bank, the card schemes or the police.
• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.
• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.
• Make sure your computer has up-to-date anti-virus software and a firewall installed and switched on.
• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.
• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.
• Always log out after shopping and save the confirmation email as a record of your purchase.

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