fraud protection

The incidence of identity theft and 'card not present' fraud has shot up in recent years, but there are plenty of steps you can take to protect your personal data.

Checking bank and credit card statements

Check bank statements carefully for fraudulent transactions and report any suspicious entries immediately to your bank, building society or credit card provider as soon as possible.

The longer the delay in notifying the provider of a disputed transaction, the more difficult it will be to resolve.If you refuse to co-operate in an investigation, the Financial Ombudsman Service or the courts can take this into account.

Taking care of your data

Taking care of your cheques, passbooks, cards, electronic purse, PINs and passwords.

Safeguarding your information is essential to help prevent fraud and protect your accounts:

  • don't keep your cheque book and cards together.
  • don't allow anyone else to use your card, or tell anyone else your PIN, password or other security information.
  • don't choose a PIN number that is easily identifiable as yours, such as the last part of your phone number.
  • try to remember your PIN, password and other security information, and destroy the notice as soon as you receive it.
  • always take reasonable steps to keep your cards safe and your PIN, password and other security information secret at all times.
  • Never give your account details or other security information to anyone unless you know who they are and why they need them. (Don't respond to phone calls or emails asking for security information).
  • Keep card receipts and other information about your account containing personal details (such as statements) safe and or shred them.

Visit the APACS website http://www.cardwatch.org.uk/ for a helpful guide on what to do if you suspect card fraud.

NOTIFYING YOUR FINANCIAL PROVIDERS

It is essential that you inform all the financial institutions you deal with as soon as possible when you change your:

  • name
  • address
  • phone number, and or
  • e-mail address

Quite apart from the security risk, If banks and building societies do not hold your current address, they may regard your account as ‘dormant.’

Protecting cheques

  • If you are making a cheque payable to a bank or a building society, do not make the cheque payable simply to that organisation. Add further details in the payee line (for example, XYZ Bank,re J Jones, account number xxxxxx). 
  •  Draw a line through unused space on the cheque so that fraudster cannot add extra numbers or names.

The more details about the true payee and the fewer the empty spaces on the cheque, the less likely it is that it can be diverted to another account.

What to do if you lose your cheque book, passbook, electronic purse or card, or if someone else knows your PIN

It is essential that you tell the provider as soon as you can if you suspect or discover that:

  • your cheque book, passbook, card or electronic purse has been lost or stolen; or
  • someone else knows your PIN, password or other security information.

Use the helpline number of e-mail address for reporting lost or stolen cards or data.

Safe online banking

Online banking is safe and convenient as long as you take a number of simple precautions, such as the following:

  • Keep your PC secure. Use up-to-date anti-virus and spyware software and a personal firewall.
  • Keep your passwords and PINs secret.
  • Treat e-mails you receive with caution and be wary of e-mails or calls asking you to reveal any
  • personal security details. Neither the police nor providers will ever contact you to ask you to reveal your online banking or payment card PINs, or your password information.
  • Visit http://www.banksafeonline.org.uk/ for useful information

 

LIABILITY FOR LOSSES

Unless your provider can show that you have acted fraudulently or without reasonable care, your liability for the misuse of a bank or building society card will be limited as follows:

  • If someone else uses your card, before you report it as lost or stolen or that someone else knows your PIN, the most you will have to pay is £50.
  • If someone else uses your card details without your permission, and your card has not been lost or stolen, you will not have to pay anything.
  • If someone else uses your card details without your permission for a transaction where the cardholder does not need to be present, you will not have to pay anything.
  • If your card is used before you received it, you will not have to pay anything.

The second bullet refers to situations where, for example, your card has been cloned. Unless you have acted fraudulently or without reasonable care (which the provider must prove), you are liable for a maximum of £50 in total before you give notification of the loss..

The Banking Code refers to customers being at fault it they have acted ‘without reasonable care’ whereas formerly the words ‘gross negligence’ were used. However, the standard has not changed and the  ‘gross negligence’ standard is still applied by the Financial Ombudsman Service when handling disputes.

Useful contacts

http://www.identitytheft.org.uk/

http://www.getsafeonline.org/

http://www.bankingcode.org.uk/

http://www.cifas.org.uk/identity_fraud.asp