Credit Card Fraud, your opinions...

  wizza68 20:54 21 Apr 2007
Locked

Hello,

These days it seems you can not let a day pass without hearing about someone who has had their credit card cloned and had multiple transactions made against it, usually to make purchases in a foreign country that does not use chip and pin.

Why doesn't the UK credit card industry have an 'only use in the UK' option, so any foreign transactions would be stopped imediately? If you wanted to use the CC abroad, you could contact your CC company and get them to allow transactions abroad in certain specified countries (or even all countries) for the period you are away.

Is this just being totally naive or something you think might just cut down fraud a little more?

  HondaMan 20:57 21 Apr 2007

being a little naive. My card (which is only used for transactions over the net) is used for several non-uk transactions a month. How else would I be able to do these?

  VoG II 21:06 21 Apr 2007

My Barclaycard Visa won't work abroad unless I inform them in advance. I actually find this to be a damned nuisance and I use another card.

  Flak999 23:32 21 Apr 2007

Particularly at petrol stations is linked (allegedly) to the liberation tigers of Tamil Eelam click here I know personally of two people who have had their cards cloned after visiting garages in the south east.

Chip and pin is not as secure as we were led to believe it was!

No matter how sophisticated our security becomes there will always be someone somewhere that can circumvent it, whether it is music or video, Hollywood blockbuster or the latest software, there will always be somebody who can crack the security and allow unrestricted access to the most secure of intellectual property!

Perhaps a return to good old fashioned cash is the answer?

  DrScott 00:14 22 Apr 2007

is a pain no doubt. But at the end of the day consumers don't directly lose out financially. It's for the credit card companies to decide how to best deal with fraud since they pick up the tab, and I'm sure all positions have been and will be considered.

  Forum Editor 00:59 22 Apr 2007

as we were led to believe it was!"

Yes it is.

In the first six months of 2006 card fraud fell by 5%, mainly due to the introduction of chip and PIN.

Card Not Present fraud (CNP) accounted for 46% of all losses, and increased by 5%. This figure was still a big improvement on the previous situation - between 2004 and 2005 CNP fraud increased by 29%.

Fraud figures would have fallen much further if more of us took greater care when using our cards.

Research by the UK Payments Association (APACS) shows that:-


1. 25% of all card-carriers in Britain have at some point disclosed their PIN to someone else - exposing them to a heightened risk of fraud and potentially making them liable for any card fraud losses they may suffer.

2. More than a quarter of people (27%) use the same PIN for all their cards - which makes life easier for the fraudster given that each cardholder in the UK has, on average, four cards.

3. 44% of card-holders still let their cards out of their sight (in restaurants and bars for example) putting them at greater risk of fraud.

4. More than half of online shoppers (51%) never check that a website address changes from http to https before making a purchase – indicating that awareness of secure shopping advice is low.

  laurie53 08:17 22 Apr 2007

One of the particular problems with petrol stations is that most of the ones I use (mainly supermarket ones it must be said) actually take the card from you through that security grill they have, and use a machine which is out of clear sight, rather than use the accessible machine which you use for your PIN

Laurie

  MichelleC 08:43 22 Apr 2007

..."Chip and pin is not as secure
as we were led to believe it was!"
Yes it is...

There are some idiocyncracies in the everyday usage of the c & p which could lead to others having access to your numbers. In shops, supermarkets, restaurants etc when you enter the four numbers there are usually people in the near vicinity who could quite easily see the numbers. I could never quite understand why these machines are so placed so that when you enter the numbers it is often visually very insecure. I realise it's up to us to ensure no one else sees you entering the numbers, but in everyday practicalities it's almost impossible to be able to shield the machine in such a way no one else can see.

CC fraud may be more secure than before but there's still a long way to go.

  Forum Editor 09:56 22 Apr 2007

I agree that PIN machines need to be made so that people feel more secure at checkouts - it's easily done.

That said, you need both the card and the PIN if you're going to engage in fraud, and unless someone in the checkout queue robs you outside the shop you're a lot more secure than when you simply signed a slip of paper.

The real danger is card cloning, and to protect yourself from that you need to ensure that your card doesn't leave your sight.

  johndrew 12:02 22 Apr 2007

`"Chip and pin is not as secure

as we were led to believe it was!"

Yes it is.`

Perhaps, if it is so secure that companies make the observation that you must have revealed your PIN for the fraud to occur, there are devices which are capable of reading and transmitting it on entry to the terminal. A truly secure system would be far more tamper proof and ensure that the PIN could not be transmitted in any meaningful form.

It is time for credit card companies to admit that chip & PIN was designed to protect them rather than the consumer. There are far too many cases where fraud has occurred but the card holder is held liable when they are clearly not.

  jack 12:17 22 Apr 2007

I think the card companies are more astute that we give them 'credit' for.
Last year whilst on holiday in Scandinavia- I used the card liberally in gift shops and the like.
I noticed that the till staff simply accepted the card and passed it through the reader- not chip and pini and handed it back no signature required.
As I am a very infrequent foreign traveller I half expected a query from the card Co- but not so the next statement came in and it all checked out.

A couple of months later I was telephoned by the card Co., to inform me that my card had been used to make a substantial purchase in Ireland and a second attempt had been blocked- They stopped the card and issued a fresh one
My closing statement showed a few purchases for that period including one Forecourt refill.

Which leads one on to the query how come that Irish based firm allows for large purchases to be delivered to a non card holder address [I guess we can guess which firm it was]

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