Criminals are increasingly using identity theft to obtain sufficient personal information to facilitate fraud against individuals. Below are some of the most common types of fraud:
Application fraud
Criminals may apply for goods and services, such as credit cards or mortgages, by using stolen personal information. Victims are usually unaware of this impersonation activity until there is either:
- contact from the bank
- demand for payment for good/services in your name
- difficulties in obtaining goods and services
- withdrawal of existing services such as an overdraft limit
Account takeover fraud
Criminals are able to 'takeover' an account without the permission or knowledge of the genuine customer by using personal information, which then enables them to exploit and access funds within the account.
Card not present fraud
Where the card itself does not actually need to be present, just the details on it which can be used over the phone or on the internet to make purchases or transfer money.
Counterfeit card fraud
This involves criminals cloning your card details to create a counterfeit copy, which can then be used to make purchases in shops.
Cash machine fraud
This can either involve criminals withdrawing cash at a cash point (ATM) using your card or obtaining your card details for future fraudulent use. The most common ways they can obtain these details are:
- Shoulder surfing - Criminals will observe you while you enter your PIN and then attempt to steal your card so they can use the PIN to withdraw cash or make purchases using Chip and Pin.
- Card trapping devices - Physical devices are attached to the card slot on the ATM, which trap and retain your card once it has been inserted. Criminals will either shoulder surf or use miniature cameras to obtain your PIN. They remove the card from the trapping device and it is then used to withdraw cash.
- Card skimming - Physical devices are attached to the cash machine so that the electronic details that are saved on the magnetic stripe on the back of the card can be recorded and a hidden camera can obtain your PIN.
10 Tips to avoid becoming a victim of fraud
- Always shield your PIN and don't ever send it over the internet or disclose it to anyone - including your bank!
- Treat your card details to be as valuable as cash - in the hands of a criminal there is no difference.
- Keep your PC's anti-virus, operating system and internet browser up-to-date.
- Shop only on secure websites. Before submitting card details, look for a padlock or an unbroken key symbol on your web browser.
- Also check that the internet browser address changes from 'http' to 'https' to indicate you have a secure connection.
- Sign up to Verified by Visa or MasterCard SecureCode for extra online protection from your card provider
- Check receipts against statements regularly for unfamiliar transactions. Shred or completely destroy all documents containing personal details.
- Try not to let your card out of your sight when making a transaction at restaurants, bars and clubs.
- Don't use a cash machine which appears to have been tampered with.
- Don't be distracted or accept help from strangers while using a cash machine. If someone is crowding or watching you, cancel the transaction and use another machine.
British Bankers Association
Reporting fraud
If you suspect you may have been a victim of fraud or you have noticed any suspicious transactions on your bank or mortgage account you should contact us immediately on 0845 607 6991*
*Lines are open 8am - 8pm weekdays, 9am - 4pm Saturdays and 10am - 3pm Sundays. Calls are charged at your service provider's prevailing rate and may be monitored and recorded.