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CREDIT CARD SCAMS an ORANGE DOOR Consumer HELP page

KEY POINTS

+General Broadly there are two types of people who use credit cards - around 50% who settle their account every month and the other half that use them as a fairly expensive way of borrowing money. There is huge competition and charges vary massively so this is an area where it is essential to shop around and also regularly review the ever-changing market place. Probably not worth showing supplier loyalty - if you get messed about or charges increase it is so easy switch to another one. Store cards are often a rip off on interest charges so if you are not going to settle every month - BEWARE.
Also we cannot understand why anyone should ever pay a provider an annual fee when there are so many free ones around.
You can even get rebate deals on some of around half to one percent of your spend - currently offered by the likes of Morgan Stanley amongst others - for details click on the top panel. Use them in conjunction with store loyalty cards and you really clean up.
THE PLASTIC CARD SCAMS Overall losses in 2003 - £402.4 million - wow!!
+The Skim You hand over your card and it is taken away where a crooked member of staff uses an electronic devce to copy your card including the details encoded in the magnetic stripe on the reverse. They will then spend on your account using the copy. The first you will know of it is when you receive a horrendous statement listing purchases that are nothing to do with you.
+ The Copy your details con. Again when your card is out of your sight your details are copied down or the details are taken from receipts you dispose of. The crooks then go on a spending spree by ordering goods over the phone.
+Identify Theft. A terrifying new development where documents such as utility bills and bank statements are stolen from your rubbish bin and used to open new accounts or take out loans in your name. A variation of this is Account Take-over where a crook gets hold of a card statement and calls your card issuer and asks for statements to be forwarded to a new address. Later he reports the card stolen and asks for a replacement which then can be used at will. The fraudulent opening of accounts in other people's names and the unlawful taking over of existing accounts led to losses of £29.7 million in 2003 - an increase of 45%.
+ Shoulder Surfing. Someone looks over your shoulder at a cash machine to learn your PIN number or even uses a miniature camera to capture it. They then pick your pocket or somehow distract you to steal your card and away they go - better than a license to print money!
+ Card Trapping. A loop of plastic is inserted into the slot in the cash machine that traps the card and also stops cash being issued. You get frustrated and the conman comes up to help and suggests you input your PIN again. When you have given up and gone away he is then free to retrieve your card and use it to raid your account. A more sophisticated version uses an electronic device inserted into the machine slot that records the information from the card's magnetic stripe, whilst at the same time a tiny pin-hole camera outside the machine films your pin number. A twin card can then be produced in minutes to raid your account. Cashpoint fraud has increased by 85% in the past year amounting to a massive £66.1 million. Advice - do not use machines that are situated in dubious positions.
+ Straightforward Theft. A £110 million's worth per annum of fraud is committed using stolen cards. Debit cards are popular to use making a string of low value purchases and asking for cash back each time.
+ Stealing in the mail - sometimes by dishonest postman. So you never even receive your card before the conman starts cheating you.
+ Spoofing or Phishing. Used by computer hackers to obtain passwords and other card details when Internet purchases are made. Another variation is that you receive an email or a phone call from your bank or other reputable organisation asking you to confirm your personal details to them. Problem is that the crooks are sending you a forged email that looks very genuine.
+ You should also read our new Identity Theft & Phishing Fraud page.
+ Phantom withdrawals A lot was made of this a few years ago but it was often a form of fraud. The card-holder would go on holiday far away but money would be taken from their local machine so they would claim that they could not possibly have taken it and try to claim compensation from their provider. Usually however they had willingly given the card to a friend or relative to set up the scam.

CARD CLONING - COPYING YOUR CARD To the left is a normal machine that has not been tampered with.

Here to the left is the same machine after it has been tampered with - see the new attachment to the card slot - very sophisticated, it has even been sprayed to match the same colour as the rest of the machine. Your card can now be copied without you even knowing. There will also be a pinhole camers nearby to read your pin number. Then they murder your account. SO BEWARE. One thing you can do is always cover your hand when punching in your pin number.

WHAT CAN YOU DO?
+ Never give your PIN number or password to anyone else or let them use your card - even a close relative.
+ Check your statements very carefully as soon as they arrive and notify your card provider immediately of anything suspicious.
+ Always destroy any paperwork with any personal details on before you throw it away. We strongly recommend using a paper shredder. A good electric one will only set you back about £30. Get them from office suppliers or on line www.vikingwelcome.co.uk
+ Be aware it is potentially dangerous to ever let your card out of your sight.
+ Do not write your PIN number down anywhere close to you card. For instance if you lose your handbag a crook will always look for your PIN number in your diary.
+ Worse still if you write down your number on your card you are crazy because your provider will wash their hands of you and you will be personally liable for every fraudulent pound.
+ Never fall for the trick of some apparently genuine organisation contacting you by email or phone asking you to confirm your personal details such as PIN number or password. It will always be a con.
+ Streetwise. Take great care when using a hole in the wall machine in a dodgy area or at a time when few people are around - you do not want to be mugged!
+ Act fast. If your card is lost or stolen notify your provider immediately. That way you reduce your risk of them trying to say that fraud that happened before you notified them is your responsibility.
+ Identity theft. If you suspect this is happening to you contact the Protective Registration Service run by the Card Industry Fraud Avoidance System (CIFAS) 0870 0102091. They arrange for a warning to be added to your account so providers know to double-check that any application comes from the person who lives at the address on the form. Credit reference agencies can tell if applications for credit have been made in your name. See left hand column for details.
+ Travelling. Let your provider know if you are going to use your card away from home. Some providers now have sophisticated computer programmes that track card usage and switch them off automatically if they see a change in usage pattern they cannot account for. So if you do not let them know you my find that your card does not work on holiday.
+ Buying on-line. Only deal with reputable organisations that you can trust. Beware of dealing with a website that does not display a postal address - you want to know where they are. Only pass your details to a secure server so that the communication is encrypted. There should be a little closed padlock logo at the bottom of your screen to indicate this. You are taking a huge risk if you send credit card details by email. Lastly even if you do have a secure fire wall best not to record your card details on computer just in case a hacker gets in.
+ Advantages. There are some advantages of paying by credit card - for instance if a company goes bust before they deliver the goods you will be protected. Not so if you pay by cheque or debit card.

WHAT BANKS & SHOPS ARE DOING ABOUT PLASTIC CARD SCAMS
+ Chip & Pin cards. They do reduce fraud but criminals now have transferred in a big way to card not presnt fraud. There have even been reports of call centre staff selling personal details to criminals. Most cards now also have a special security number on the back in the signature stripe area.
+ Contact checks. When you phone with a query you will be asked for all kinds of security details - password, mother's maiden name etc.
+ Usage tracking. If they spot a change in usage patterns that may indicate fraud they will contact you to check or even switch off the card.
+ Shops. More and more are now not printing full card numbers on receipts. If they do not, make sure you shred them before disposal.
+ Phone or Internet orders. Many now take extra precautions by demanding your exact card billing address and the card reverse security number.
+ Avoiding card loss in mail. Some banks and building societies now ask for new cards to be collected at a local branch. Or you may have to phone up to activate the card before it can be used.
+ Lost or stolen. Once it is reported missing it is entered on a "Hotcard filing system" that is automatically checked as the card is swiped and alerts not to accept.
+ The Law. The law protects you against fraudulent use of a personal credit card up to £1,500, providing you have notified your card provider.

UPDATE - Chip & Pin cards store personal information more securely and so are more difficult to copy. These changes have not just happened in the UK but in around 100 other countries as well. Unfortunately the new system will not improve security when buying over the phone or Internet, a pity because 25% of fraud happens here and it is increasing hugely. An important reminder - never supply your PIN number when buying over the phone or Internet.

SORRY but we cannot advise on individual card problems.