Banking industry warns about a growing card fraud scam

Scam can be stopped easily, provided cardholders:

• Never share their PIN with anyone (including the police or their bank)
• Be wary when receiving unsolicited phone calls from people claiming to be from their bank or card company. If in doubt, call the bank or card company back on a number you know to be correct.
• Give cold-callers a cold reception!

Financial Fraud Action UK, the voice of the industry for financial fraud matters, today (21 October 2009) advised about the recent rise in popularity of an old-style phone scam. The fraudsters dupe unsuspecting cardholders into handing over their card and revealing their PIN by pretending to be from either their bank, card company, or even the police.

The scam begins with the fraudster phoning up, typically claiming to be from the security or fraud department of the prospective victim’s bank, saying that their records have flagged up a fraudulent transaction on their card. By seeming to offer assistance, the fraudster hopes to gain the victim’s trust.

The fraudster then asks the victim to write down their PIN – and place it in an envelope with their card – and advises the victim that they will send a courier to collect it. The fraudster then hires a genuine courier to collect the envelope that contains the victim’s card and PIN. The courier, who is an unwitting pawn in the scam, then hands over the envelope to the fraudster, who uses the card and PIN to withdraw cash from cash machines. 

Katy Worobec, Head of Fraud Control, Financial Fraud Action UK said:

“Fraudsters have been targeting particular groups of cardholders. So far some of the victims have included pensioners and members of the Asian community. However, what is now clear is that the scam is becoming more widespread.”

“You should never disclose your PIN or any personal financial information as a result of someone cold-calling you over the phone – wherever they claim to be from. If you have any doubts when approached in this way you should hang up the phone and call the organisation back on a number that you know is correct. If you think you have already been a victim of this scam, contact your bank or card company immediately.”

As well as keeping your card and PIN details safe and secure, there are a number of other common sense steps that individuals can follow to help minimise the chances of being a victim of fraud. Our advice to consumers is:

• Don’t let your cards or your card details out of your sight when making a transaction.
• Check your bank and card statements regularly and thoroughly – if you spot an unfamiliar transaction contact your bank or card company as soon as possible.
• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.
• When shopping online register your cards with Verified by Visa or MasterCard SecureCode².
• Do not keep your passwords, login details and PINs written down.
• Do not disclose PINs, login details or passwords in response to unsolicited emails or telephone callers claiming to be from your bank, card companies, Visa, MasterCard or the police.
• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.
• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.
• Make sure you have your card company’s 24-hour contact telephone number with you – especially if you are travelling overseas – in case your card is blocked.
• Make sure your card company has up-to-date contact details for you, including a mobile telephone number, so they can speak to you if they need to.
• Make sure your computer has up-to-date anti-virus software and a firewall installed and switched on.
• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.
• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window.
• Always log out after shopping and save the confirmation email as a record of your purchase.

More information for consumers about fraud prevention is available at www.financialfraudaction.org.uk

Industry spokesperson is available for interview on request. For further information contact the Press Office on 020 7711 6316 or press@ukpayments.org.uk.

ENDS

Notes to editors:

1. 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. It was launched on 6 July to replace the work carried out by APACS and is now the payments industry voice on fraud.  Financial Fraud Action UK (www.financialfraudaction.org.uk) works closely with The UK Cards Association on industry initiatives to prevent fraud on credit and debit cards.

2. The UK Cards Association is the leading trade association for the cards industry in the UK. With a membership that includes all major credit, debit and charge card issuers, and card acquiring banks, the role of the Association is both to unify and represent the UK card payments industry.  It is responsible for formulating and implementing policy on non-competitive aspects of card payments including codes of practice, fraud prevention, major infrastructural changes, development of standards and other matters where cross-industry benefits are identified.  The UK Cards Association was formed in April 2009 as the successor body to the APACS Card Payments Group.  More information about The UK Cards Association is available on www.theukcardsassociation.org.uk.

3. Since 6 July 2009, the payments industry has stopped using the name APACS in favour of names that better describe the different parts of the industry. The UK payments industry has a number of different schemes and separate industry groups including:

· Bacs (which manages the Direct Debits and Direct Credits schemes)

· CHAPS Co (which manages CHAPS Sterling and Faster Payments Scheme)

· The Cheque & Credit Clearing Company (which manages the cheque clearing system in Great Britain and the systems for clearing paper bank giro credits and euro-denominated cheques)

· DCPCU (the specialist, banking industry funded, police unit that is responsible for investigating serious and organised card and cheque fraud)

· Financial Fraud Action UK (the name under which the financial services industry co-ordinates its activity on fraud prevention)

· Payments Council (the organisation responsible for ensuring that payment systems and services work)

· The UK Cards Association (the leading trade body for the cards industry in the UK)

· SWIFT UK (a membership organisation representing the UK community of SWIFT users by co-ordinating views, forming a common UK policy and lobbying and influencing key stakeholders)

· The UK Domestic Cheque Guarantee Card Scheme (providing a guarantee for personal cheques up to a certain limit; closing on 30th June 2011)

4 Verified by Visa and MasterCard SecureCode are secure online payment systems that enable cardholders to authenticate themselves when shopping online at participating merchants through the use of a password. More information is available at www.becardsmart.org.uk.

5 More information about banking safely online is available at www.banksafeonline.org.uk