You might feel that people are essentially good and that if you were to lose your wallet, it would be returned to you with all your credit cards and money enclosed. A study recently carried out by card and identity protection firm CPP found that when they ‘dropped’ 20 wallets in five different cities across the UK, just two out of every ten were returned and only half of these still contained the cash left in them.
Furthermore, they found that 77 per cent of people who lose their wallet never see it again. This is even more worrying when we consider that according to the findings, the average wallet contained £85 and an amazing £7,000 worth of credit. One in five of those people who lost their wallet had become victims of credit card fraud following the loss and another five per cent had their identity stolen.
Most of us will be aware that credit card fraud is a growing problem both in the UK and across the world, but most of us probably don't know all the ways we can avoid becoming a victim and what to do if the worst happens. Credit card companies do their bit by making sure we are not left out of pocket, but what can we do to make sure it never happens in the first place?
Cardwatch.org.uk points out on its website that credit card fraud has increased to unprecedented levels in recent years and that much of the proceeds go towards organised crime. Most of the cost of this fraud is paid for by the banking industry, but it doesn't mean that you won't be inconvenienced by the fraudulent use of your cards.
It is not just through the loss of your card that fraud can occur, although having your card physically stolen may be the most popular option for some fraudsters. Other criminals may resort to skimming your card. This means that the data on your magnetic strip or chip is stolen without you even knowing. This can occur when you pay for things at a retail outlet or it can occur at an altered cash machine. You might not even know until your credit card statement turns up with unexpected spending.
Other types of fraud include that which is carried out over the Internet. The fraudsters simply gather credit card numbers and use them online. They may do this by fishing in your bin for old statements, finding out your online login details or simply writing it down when you pay in a shop. In addition to all this, a criminal can even use your personal information to get a card in your name. They will then change all the address details on the account, making it impossible for you to track what has happened.
It is not always easy to prove that you are the innocent party when credit fraud occurs. Let’s imagine you have applied for credit cards with 0% interest and they fail to turn up in the post. You get another sent to you, but in the meantime someone is using the ‘lost’ card. You will need to prove to the bank that you did not buy the items which are showing up on your statement. This can take some time and you will need to provide proof that you were not in a certain store at a certain time.
Eventually the money will be returned to you, but you may find that the fraud has already affected your credit rating and you will need to go through the process of having your credit rating details corrected. All of this is time consuming and not much fun. So how do you avoid becoming a victim of credit card fraud?
Credit card companies have installed security features such as chip and pin onto their cards to make fraud more difficult, even for the most technologically savvy criminals. The chip is safer than a magnetic strip and having a PIN number is safer than signing for your purchase.
Cardwatch recommends the following for keeping yourself safe from credit card fraud:
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Always know where your card is when making a purchase. Don't let anyone take it out of your sight; even the person working behind the counter in a shop.
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Keep PIN numbers and login details to yourself and don't write them down or tell anyone else; even your family members.
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Do not respond to emails asking for your PIN numbers or credit card details.
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Shield your hand when you enter your PIN in a store or cash machine.
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Use antivirus software on your computer to prevent infection by malware which might pick up your online banking login details.
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Do not follow links sent to you in an unsolicited email.
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Check that the sites you are using your card at are secure. They will have a security icon in the bottom of your browser window.
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Report any lost cards immediately via the 24-hour emergency helpline you will have been given when you applied for your card.
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Cut up expired cards or shred them along with all your statements when you no longer require them.
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Call your bank if an expected card has not shown up.
If the worst happens and you think you might be a victim of card fraud, then tell your bank immediately and it can start the process of having the money returned to you. The most you will have to pay is £50 if your card has been used before you report it. But if you have not looked after your card or have told someone your PIN, then you may be liable for all the losses.
Credit card fraud is not only distressing, but very inconvenient. Taking all of these security measures and keeping yourself safe should mean that you are not a victim and can enjoy being the proud owner of a credit card.