How to beat identity fraud Common scams
Identity fraud is a serious problem, with phishing scams on the rise
Identity fraud is becoming a bigger issue as scammers get bolder and their methods become more sophisticated, making them harder to detect. Cifas, the UK's fraud prevention service, revealed that there were 24,819 recorded cases of identity fraud from January to March 2009 - 38% more than in the previous quarter.
Fraudsters looking to steal someone’s identity will attempt to obtain sensitive personal details any way possible. This tends to be by acquiring paper documentation like unshredded bank statements or utility bills through which they can impersonate you, or by tricking you to give up your bank details and security information over the phone or the internet.
The following are all known ways in which criminals will attempt to steal or capture your information:
Phishing
Criminals send emails that appear to come from your bank to get you to give them passwords and account details on a fake version of your bank’s website.
The number of ‘phishing’ emails being sent out has increased dramatically in the last couple of years. So far the banks have refunded money lost as a result of people divulging security and account details in this way. However, in future banks may well not refund money if people have divulged their security details.
How to beat it: Never reply to emails or use links in emails, even if you think they really are from your bank – they probably aren't. If you are emailed or phoned by your bank, use its normal contact numbers to confirm whether the message is genuine. It is a good idea to use security software on your PC to block ‘spam’ emails.
Be wary of phishing emails to keep your card details safe
Skimming
Criminals use ‘skimming’ devices that they attach to cash machines to capture card details. They also set up cameras to record Pins and this enables them to use counterfeit cards to get cash from bank accounts. Another ploy is to use card readers to capture card details elsewhere – for example, in restaurants and petrol stations.
How to beat it: In our survey 88% of people said that they tried to prevent people seeing their Pin at cash machines and in shops. Further steps you can take include not writing Pins down and not using the same Pin for several cards (48% of people admitted to the latter in our reader survey).
Throwing away valuable financial information
In our survey, 92% of people said they shred or rip up financial information before throwing it away. This is good news, as criminals can use your personal details to open new accounts or gain access to existing ones if you throw old bank statements and credit card bills away in one piece – or simply tear them into two or three pieces that could be easily reassembled later.
How to beat it: Use a shredder or thoroughly rip up personal documents before binning them.
Shops/restaurants
Portable card readers, used in shops and restaurants, should make it harder for criminals to get your details. There is no reason for your card to be taken away for swiping where they are in use, according to the Association of Payment and Clearing Systems.
How to beat it: Try not to let cards out of your sight in shops and restaurants. Check bank and credit card statements regularly for any rogue transactions. Don't write down Pins or divulge them to anyone.
Call centre fraud
The Financial Services Authority (the industry regulator) has said that it is essential for banks to have proper vetting procedures for recruiting staff and for the security of data, especially when it is being held offshore. This is sensible advice as, according to experts, most fraud is either committed by organised criminals or by people working inside companies.
How to beat it: Banks shouldn't ask you to reveal complete passwords or account details over the phone, so use your common sense whenever you're asked for security or account details.
Intercepting mail
Criminals steal new credit and debit cards and cheques from the post and then use them to buy goods. In 2008 this accounted for £10.2m of card fraud, according to the UK payments association Apacs, but had not increased since 2007. If you move house, it is important to have post redirected by Royal Mail to prevent your personal details falling into the wrong hands.
How to beat it: Cancel any old cards you don't use and close any accounts you aren't using. Ask your bank not to send you unwanted credit card cheques.
Cheque fraud
In 2008 cheque fraud cost us £41.9m in the UK - an increase of 25% from 2007. Most of this was by organised criminal gangs, who were using stolen or altered cheques.
How to beat it: Clearly write the name of the person you are paying the cheque to. Draw a line through blank spaces on cheques to prevent amendments being made. Fill in cheque stubs and check against statements for discrepancies.
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