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Credit Card Fraud

Have you got a burning money question? Our expert Chris Eagle is ready to help. Email him at OurExpert@CreditChoices.co.uk

Q ~ Dear Chris,

I’ve been a bit foolish and wondered if you could help me out.

I’ve not been checking my bank statements thoroughly, and it’s only recently when I was clearing out a drawer that I took a look at a bunch of old statements and noticed a number of discrepancies.

As it transpires, I’d had my credit card cloned and been a victim of ID theft, but I noticed too late for anything to be done about it.

How can I prevent this from happening in the future?

Thanks,

Marlene, via email

On the subject of credit card fraud, our expert says:

Hi Marlene,

You quite simply must fully check your credit card statement when it arrives. It doesn’t take any longer than ten minutes, and it could have saved you a considerable amount of money.

It’s an unfortunate symptom of the modern age, but everyone sorts through their statements with a fine-toothed comb these days. It’s a necessity.

Red Alert

You don’t need me to tell you that you should be as quick to alert the card issuer in the event of fraud as possible. Any amount of dawdling will only slow the whole retrieving process down.

Should you have noticed the abnormalities immediately, it would have been relatively easy for your credit card issuer to pinpoint the problem and refund your loss.

Obtaining a refund is usually fairly straightforward. Legally the onus is on your credit card supplier to prove you’ve been negligent, and unless you’ve been lending your card to all and sundry, you would have been in line for a full or partial refund.

Firewalls and Anti-virus Software

New rules added to the banking code, designed to absorb the impact of a high court loss in the overdraft fees test case, signal less willingness on behalf of the banks to cover losses.

Customers must have up to date antivirus and anti-spyware software installed on their computer if they’re to successfully claim compensation after becoming victims of online fraud. Additionally, a personal firewall is also required.

These new rules signify two things:

(1) Using your debit card to make online payments is not a great idea. Credit cards offer more protection to the online shopper and are a safer bet.

(2) Up to date anti-virus software is a must for all keen online shoppers.

A viable alternative for those who wish to shop online without using a credit card or debit card is a prepaid credit card. Effectively, if you intend to pay for goods to the value of £19.99, you can top up the prepaid card with £20 and pay this way, safe in the knowledge there are no extra funds for fraudsters to get hold of.

Capital One

The Capital One (www.capitalone.co.uk) credit card offers free fraud protection. Should anyone attempt to apply for credit in your name, Capital One will alert you immediately, thus significantly reducing the likelihood a fraudulent act will take place.