Card Fraud Scam

Millions being lost to sophisticated new card fraud phone scam

We are sure you have probably read all the warnings and info in this article, but perhaps NOT all in one place - please do pass on to others for their benefit. May we also add - PLEASE do not respond to any emails requesting information, no financial company will ever ask you for info via email, so just ignore !

  • New ‘card fraud phone scam’ records a three-fold increase in financial losses
  • “Would you spot it?” – a worrying 80% of consumers feel anyone could fall victim
  • Simple advice to help combat this crime is available from payyourway.org.uk

A sophisticated type of fraud – where people are telephoned by fraudsters and duped into revealing their PIN and handing over their bank card to a courier – is on the rise.

Pay Your Way, the Payments Council’s education campaign, is working with The UK Cards Association and Financial Fraud Action UK, to raise awareness of how to avoid becoming a victim of this type of crime. More than £1.5 million has now been lost to this crime, with the same amount - £750,000 - stolen in the first four months of 2012 that was stolen during the whole of 2011. This equates to a three-fold increase.

The scam involves a person being called by someone claiming to be from their bank and told that their debit or credit card needs collecting as it needs replacing following fraud on their account. The caller often suggests the person hangs up and calls the bank back if they want to ensure the call is genuine, but stays on the line, tricking the person into thinking they’re calling their bank. The criminal will then ask the person to key in their PIN number, before sending a courier to collect the card. The victim is told the card is going to the bank to be changed but is actually delivered to the fraudster to use along with the PIN obtained during the scam.

According to figures released today by Pay Your Way, over three quarters of the UK (76 per cent) feel confident they would be able to spot a fraudulent telephone banking call. However, after hearing how the card fraud phone scam works, over half (56 per cent) of the 4,000 people surveyed were surprised by how sophisticated it is, one third (33 per cent) worried they were more vulnerable than they thought and four fifths (80 per cent) felt that anyone could be a potential victim to the fraud.

With 91 per cent feeling that older adults would be particularly at risk, the campaign is encouraging people to make sure that older relatives and friends are also aware of the scam in order to stamp out this kind of crime and help older generations to keep their finances secure.

In response to the newly-released figures, tips to help people arm themselves against fraud can now be found at www.payyourway.org.uk, where a whole range of guidance on safer payments and banking is available.

DCI Paul Barnard, head of the bank sponsored Dedicated Cheque and Plastic Crime Unit (DCPCU), the specialist police unit that tackles UK card and cheque fraud, said:

“Many of us feel confident that we can spot fraudsters but this type of crime can be sophisticated and could happen to anyone. If you have friends or relatives who you feel may be vulnerable, please help them to be more aware of the potential risks and what to look out for. Remember, if you are the innocent victim of card fraud you will not suffer any financial loss."

“If you think you have become a victim of fraud on your account you should contact your bank in the first instance, although if there is a crime in progress you should call 999 straightaway.”

Follow these simple tips to avoid becoming a victim:

  1. Never hand over your card: Your bank or the police will NEVER ring you and tell you that they are coming to your home to pick up your card, so never hand it over to anyone who comes to collect it.
  2. Never share your PIN: Your bank will NEVER ask you to authorise anything by entering your PIN into the telephone. NEVER share your PIN with anyone – the only times you should use your PIN are at a cash machine or when you use a shop’s chip and PIN machine.
  3. Always speak to the bank securely: Before calling your bank, make sure you can hear the dial tone and only ever call your bank on an advertised number.

The Pay Your Way campaign

The payment choices available to UK consumers have expanded at an increasing rate since the early 60s. Pay Your Way is a Payments Council campaign that aims to educate consumers about the different payment methods available to them.

PayYourWay.org.uk aims to help consumers make informed choices, with practical guides explaining how to make various types of payments as well as a comprehensive glossary of payment terms and advice on security, reliability, speed and costs.

Go to www.payyourway.org.uk to find out more, or follow the campaign at twitter.com/payyourwayUK

The UK Cards Association

The UK Cards Association is the leading trade association for the card payments industry in the UK. With a membership that includes all major credit, debit and charge card issuers and card payment acquirers, the Association contributes to the development of legislative and regulatory frameworks; develops industry best practice; safeguards the integrity of card payments by tackling card fraud; develops industry standards; and co-ordinates other industry-wide initiatives across matters relating to both card payments and the provision of credit. For more information visit www.theukcardsassociation.org.uk

Financial Fraud Action UK

Financial Fraud Action UK is the name under which the financial services industry co-ordinates its activity on fraud prevention, presenting a united front against financial fraud and its effects. Financial Fraud Action UK works in partnership with The UK Cards Association on industry initiatives to prevent fraud on credit and debit cards, with the Fraud Control Steering Group on non-card fraud matters and the Cheque and Credit Clearing Company on credit clearing and cheque fraud. For more information visit www.financialfraudaction.org.uk

The Dedicated Cheque and Plastic Crime Unit (DCPCU)

The Dedicated Cheque and Plastic Crime Unit is a special police unit that consists of police officers from the City of London and Metropolitan police forces who work alongside banking industry fraud investigators and support staff. The Unit is fully sponsored by the banking industry which invests nearly £5 million per year in the Unit’s operation: The UK Cards Association provides 80% and the Fraud Control Steering Group provides 20% of this funding.

Payments Council

The Payments Council is the body with responsibility for ensuring that payment services work for all those that use them in the UK. This unique role ensures that we listen to a wide range of stakeholders to drive innovation in payments and implement change so that individuals and businesses have access to payments for their current and future needs. We are, by nature, a collaborative body so we work with the financial institutions in the payments industry as well as listening to the voices of our external stakeholders. The Payments Council has three core objectives: to have a strategic vision for payments and lead the future development of co-operative payment services in the UK; to ensure payment systems are open, accountable and transparent; and to ensure the operational efficiency, effectiveness and integrity of payment services in the UK.

For more information visit www.paymentscouncil.org.uk

Content credited to: Payments Council 2013