News
Eight million chip’n’pin pals at risk of ID fraud
One in five Brits are telling friends and family their PIN numbers, leaving themselves open to chip-and-PIN fraud.
New research from LV= home insurance has revealed that in the past 12 months, over eight million adults have given their chip and pin details to someone else to make a purchase on their behalf or get money from a cash machine for them – with a quarter (24%) of these falling victim to fraud. While one in three Brits (34%) say they have been asked to pay for goods or take money out on someone else’s behalf.
The research shows that ID fraud 'hotspots' such as websites, petrol stations and cash points are among the most common locations for people to use friends' and families' cards, with the most popular ‘pin pals’ being spouses or partners, although children (20%), parents (17%) and friends (15%) are also commonly relied upon to make purchases on other people’s behalf.
Businesses themselves need to pay closer attention as 98% of people who have used someone else’s card said they were not caught, leaving retailers open to being targeted by fraudsters.
The chip and pin system was introduced in 2004 to help increase security and reduce fraud but it would appear it has had the opposite affect with over one in ten card owners saying they are more lax with their details because of the system.
ID fraudsters can quickly clock up many thousands of pounds of purchases by cloning a card and banks may refuse any kind of refund if the card owner has shared their pin with others.
This is because in the event of ID fraud, card users sharing details may be considered to have acted ‘without reasonable care’ by banks who will then refuse to pay out to cover stolen funds.
By far the worst offenders are younger people with over one in three (36%) of the under 35s admitting they have asked someone else to use one of their cards.
The most common location for ‘borrowed’ cards to be used is at a cash machine. For those people passing on their card details for someone to buy something on their behalf almost one in ten (9%) have told someone the details over the phone, 7% have written them down, 6% have given them face to face in a public place and a few have even sent the details to someone in an email or text message.
