Credit Card Fraud October Update
Replicas of the latest systems designed to protect your credit cards online are being used by fraudsters to mimic the credit card issuers own security systems and to steal card holders personal information .
The best credit card security verification systems of ‘MasterCard SecureCode' and ‘Verified by Visa' manage the enhanced ‘2nd layer' security of some 70 million credit card holders, according to statistics from the UK Card Association.
Unfortunately the fraudsters are setting up websites that look similar to the extra security procedures being offered by the banks, and are luring unwary credit card holders into divulging their personal details.
If you shop online regularly you will have seen that banks and credit card companies are continually recommending customers to follow through on the extra security steps that ‘MasterCard SecureCode' and ‘Verified by Visa' offer. American Express don't currently have a visable 2nd layer system.
But internet security experts at Cambridge University say these systems encourage people to enter confidential information into pages that they cannot be sure are real.
Although the information and the way it's visually presented on these security pages could be replicated by an amateur web programmer in a few minutes, banks and retailers are increasingly requesting their customers to sign up for one or other of the schemes. There's little difference between the Visa and MasterCard versions, or to compare credit cards security systems over; they both work on the same software and principals.
Steven Murdoch of Cambridge University said
"Criminals are impersonating ‘Verified by Visa' and ‘Mastercard SecureCode' websites and collecting confidential customer data, for example their password, their ATM PIN or their card number."
Mr Murdoch says after the launch of this extra layer of security, the number of fraudulent security sites has increased dramatically. Although the foundations of credit card law in the UK mean that the customer doesn't pay for any fraudulent transactions, consumers need to be constantly aware of their card issuers ‘Terms and Conditions' if they want to rely on this protection. Mr Murdoch says if customers are victims of fraud, they could end up being liable for it.
He went on to say
"One concern we have is this might follow the same situation as Chip and PIN. The technology first gets introduced, the Terms and Conditions get changed and customers are held liable for fraud even though there's no way for them to effectively prevent it."
Mark Bowerman from the the UK Cards Association which aims to represent the stakeholders in the credit card industry said
"We've never claimed that those systems are 100% secure. However, if someone is a victim of fraud having signed up to those systems, then unless their bank has hard and fast evidence that they've acted negligently, then their bank or credit card issuer should be making an immediate refund to them."
The credit card industry would say that incidences of this kind of fraud are rare and that overall, these systems contribute to the gradual decrease in credit card fraud. Fraud on debit and credit cards fell by more than a quarter in 2009 to £440.3m. However, fraud from online banking rose by 14% in the same period to £59.7m.
Ultimately one of the best ways of protecting yourself against this kind of credit card fraud is to be sure that the online retailer you're buying from is reputable.
Questions and Answers
Article Tags:
credit card fraud
,uk cards association
,verified by visa
,mastercard securecode
,compare credit cards
According to the annual 'Card Fraud Index' report, 13 million Britons have now been the victims of card fraud, but the overall trend is downwards. Nevertheless, consumers should take their share of responsibility for the problem, and take steps to protect themselves from the scammers
The UK is leading the way in online spending and with the Interactive Media in Retail Group (IMRG) predicting that UK online sales will hit £42 billion by the end of 2007, it is now essential, if not critical for your business to remain competitive and have the ability to sell your products online.
Registering a company is no longer a time-consuming and tedious business. With the new online company formation services available you will be able to register your new company in just a few clicks of a button.
Establishing large credit card debts in college develops poor money management skills. Also, high interest rates keep students in debt well after school.
If you're planning a holiday with your family, don't forget to include your credit score with you. Monitoring your credit score while you're away can be a big help. If the thought of thieves running up a huge debt on your credit card scares you, then online monitoring is what you need. Read article to know more.
Lots of people want to know how to clean up their credit report. While there are plenty of agencies out there who will do the work for you for a price, it's also possible to clean up your credit report yourself if you're willing to put in the time and effort.
Your credit score is an important thing when it comes to how lenders, dealers, companies or banks see you. It is what they look at to determine if you are worthy enough to get a loan or even to get that job position you've been longing for.
The Bank of England (BoE) has kept interest rates on hold for the 18th month in a row, but the interest rates charged by credit card companies continue to rise. We explore why and offer some ideas on how to overcome spiralling rates.
In a worrying trend started during the credit crunch by airlines and holiday companies, some local authorities are now adding up to 3% to their bills for services if customers chose to settle by credit card. We explore the reasons and ask if the charges are justified.
As UK living costs continue to rise, the annual update by the Joseph Roundree Foundation (JRF) has been published stating the public's opinion on what people need to earn to acheive a socially acceptable standard of living.
New research shows that consumers enjoy the flexibility and control that comparison websites give them, but the clear and open way that information is presented is making them more demanding, and less loyal to established brands.
Discuss this Article
