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Tue 8th Apr, 2008
Posted in Bad Credit, Banking, Borrowing, Card fraud, Consumer Credit, Consumer debt, Credit Card, Credit record, Financial news, Fraud, Identity theft, Personal loans, Spending, UK Finance, Unsecured loans at 1:22 pm by Steve Smith
It has been revealed that Facebook users are putting themselves at serious risk of becoming an unwitting victim of ID theft. Even posting just a few private details on your Facebook page can give fraudsters enough information to cause serious damage.
Using the information that they have come across on people’s Facebook pages, fraudsters are able to open bank accounts and take out credit cards and personal loans in their victim’s name.
The warning was sounded by a BBC1 consumer show Watchdog. The show conducted an experiment in which they set up a fictional identity on Facebook. The Watchdog team then invited 100 random people to become friends with their newly created fictional character ‘Amba’.
35 of those invited to become Amba’s friend immediately accepted the request despite knowing nothing about her. By accepting, the victims allowed the fictional Watchdog character to view any private details that they had posted on their page.
Details which could easily be accessed included date of birth as well as hometown. The Watchdog team then used these details in order to obtain more private details about their victims from other publicly available websites.
With this information Watchdog then opened up an online bank account in their victims’ names as well as successfully applying for credit cards.
One of the victims, Scott Gould, stated that he was “very surprised” by what Watchdog managed to do despite having only the slightest bits of information about him.
Users of Facebook as well as all other social networking sights are advised to be very careful when posting their details. Fraudsters often leave a trail of bad debts behind them, in Your name. Not only is the onus on you to prove that you are not responsible, it is hard work correcting your damaged credit rating.
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Fri 28th Mar, 2008
Posted in Bank charges, Borrowing, Card fraud, Consumer Credit, Consumer debt, Financial news, Fraud, Missed payments, Overdrafts, Personal debt, UK Finance, Unsecured loans, mortgages at 12:15 pm by Steve Smith
Since their introduction building societies and banks have been claiming that chip and pin technology is foolproof. However a new flaw at the heart of the design to prevent fraudsters from stealing your money has been exposed.
Many cash withdrawals are being carried out using cards that do not have a security chip and the shocking thing is that it is the banks themselves that are allowing this to happen.
This is how it works. Currently there are roughly 140m cards in circulation in the UK and every day an average of 7m withdrawals are made from UK cash machines. Now it is only to be expected that some of these cards will be slightly faulty therefore if banks were to reject cards with a slight fault they would then be inundated with complaints from angry customers who could not withdraw their own money.
This has left the door open to fraudsters who can use cloned bank cards that do not come with a chip to get their hands on other peoples’ cash. This leaves bank claims that the system is foolproof as completely false.
The banking industry trade association for payments has admitted that an undisclosed number of the UK’s 60,500 cash machines will allow cloned cards to withdraw money provided the cloned card is used with the correct pin number.
Because bank customers are not protected from fraud in the way that credit card holders are, account holders could find themselves fleeced of their entire balance with no redress. Not only are people finding themselves without the money to meet their home loan repayments or rent, they are going into unauthorised overdrafts and forced to borrow money to cover the shortfall.
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Mon 1st Oct, 2007
Posted in Bad Credit, Borrowing, Card fraud, Consumer Credit, Consumer debt, Credit Card, Credit record, Fraud, Identity theft, Personal loans, UK Finance, Zero percent cards, mortgages at 1:28 pm by Steve Smith
Identity fraud is a growing concern in the UK with many Britons falling victim and costing the economy an estimated £1.7 billion a year. One way that people can fall victim is by leaving unused credit card accounts open. According to Apacs, at the end of 2006 31.5 million people in the UK held an average of 2 personal credit and charge cards. However, according to the research there are around one in three cards that are no longer active, which can cause concern for some. One reason why someone may no longer use a credit card account is because they originally opened the account to take advantage of the 0% interest on balance transfers and once the balance was paid off they never used the card because of the high interest rate, or because they transferred the balance over to another 0% credit card once the offer has expired. This means that there are many people who are moving their balances from one account to another account and often forgetting to close the account once it is no longer in use.
If you fail to cancel your cards once you stop using them you may end up forgetting that you ever had them. Often if your account has no activity you will most likely end up not receiving a statement to remind you of the account. So if someone gets a hold of your information and changes the billing address, you will easily miss that and fall victim to identity fraud. Once someone has your details they can easily go further and take out expensive personal loans or even mortgages in your name. Typically these fraudsters will very quickly default on payments, leaving the black marks on your credit record. Often the first you will know of the matter is when you yourself are turned down for loans or mortgages.
One way of protecting yourself is by checking your credit report, and if you find in-active accounts listed on your report, then you should close them the ensure you do not end up a victim of fraud.
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Mon 11th Jun, 2007
Posted in Borrowing, Card fraud, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Financial news, Financial products, Spending, UK Finance at 11:20 am by Steve Smith
A new payment method will allow consumers to pay for goods without removing their credit or store card from their bag or wallet is set to be introduced across the UK. Many are worried that this type of technology will make it easier for fraudsters to steal.
The new system will apply to items under £10 and will ’see’ the cards being charged by waving them in front of a reader. This is similar to systems already used for Oyster cards in London. It is also used for automobile fuel purchases in the USA and Canada.
The ‘wave and pay’ scheme will be introduced to select businesses in the capital this September. A nationwide release will take place in 2008.
“I am pleased that the industry has united on standards for cards and terminals that will provide a highly convenient and quick way to pay for low value items,” commented Visa UK managing director Jose San Juan.
“By the autumn the first UK cardholders will be buying a coffee or a sandwich in a split second, and retailers will enjoy quicker transactions, the security of the payment guarantee and an end to the high costs associated with handling cash,” he added.
Fool.co.uk warned that the convenience of such systems could lead to consumers increasing their spending on unnecessary items, purely out of convenience.
It has also increased concerns from other consumer groups about theft and fraud. With no signing needed, and no identification, a consumer could swipe the card without any consumer protection system in place, especially as the limits will, undoubtedly, increase. With personal debt rising to record levels, debt experts are rightly concerned that swiping a debit or credit card with no pause for thought could increase the need for debt consolidation loans for shoppers who go on a spending frenzy.
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Mon 4th Jun, 2007
Posted in Banking, Borrowing, Card fraud, Consumer Credit, Financial news, Fraud, Identity theft, UK Finance at 11:23 am by Steve Smith
It has been announced that many banks will start to issue bank customers hand-held chip and pin card readers over the next six months as an attempt to cut back on online fraud. Because of the success of the chip and pin credit cards and debt cards on the High Street, big banks are hoping that these hand-help home devices will prevent online banking fraud from increasing.
The device is the size of a calculator and is relatively easy to use, as you simply insert your debit card into the hand-sized device. Once the card is inserted you then enter your unique eight-digit pin number into the bank’s website. The reader will generate a new number every time you insert your debit card, which you then use to access your online bank account. Because the device can generate up to nine million random numbers it makes it extremely difficult for fraudsters to access the online account.
Some of the first customers to be given these hand-held card readers are those customers who already have active online bank accounts. Barclays Bank has the biggest programme, with up to two million online users. They will start to send out the devices to 500,000 online customers starting in July. Other big banks, such as the Royal Bank of Scotland and NatWest will start issuing the devices this week to thousands of their online customers. Other banks, such as Halifax and Nationwide, intend to issue similar devices later this year.
It is hoped that these devices will not only beat fraud but also facilitate customers in managing their money. Customers will be able to act fast if they see that they have gone overdrawn and eventually clients may be able to apply for credit or other bank services online.
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Tue 13th Mar, 2007
Posted in Card fraud, Financial news, Fraud, Identity theft, UK Finance at 12:00 pm by Steve Smith
Con-artists cost the UK economy £13.9 billion a year in recent years, according to a report commissioned by the Association of Chief Police Officers (Acpo) and was compiled in partnership with Professor Michael Levi of Cardiff University by analysing data from global reports and national surveys.”
However, the report continues to state that the true figures may be significantly higher than their report’s claims.
The report is the result of the year-long study that was presented to MPs and the attorney general Lord Goldsmith today, Mike Bowron, commissioner of police for the City of London.
Mr Bowron said: “. . . figure excludes some major areas of criminality, such as income tax and EU fraud, where statistics are simply not available”.
The police commissioner said that if today’s report included the missing estimates the total fraud costs would exceed £20 billion.
”To put this figure into perspective, such losses would pay for an additional 200,000 police officers or save every man, woman and child £330 per year,” he said.
“It used to be said ‘No one walks down the street in fear of being embezzled.’ Well increasingly they do. Whereas once the average Briton dreaded being burgled or having their car broken into, they are now worried about identity fraud, mass marketing scams and other forms of financial crime that have a serious impact on our lives.
“Long gone is the notion that fraud is a victimless crime,” Mr Bowron concluded.
Many victims of fraud are tricked by con-artists into giving them money. Others fall victim to identity theft. Both types of fraud can result in the victim losing thousands before they finally see the problem and take action.
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Thu 8th Mar, 2007
Posted in Borrowing, Card fraud, Consumer Credit, Credit Card, Financial products, PPI, Personal debt, Spending, UK Finance, Unsecured loans at 9:29 am by Steve Smith
Although you take several precautions to prevent your credit card from being stolen, your card can still be stolen or misused. There are several precautions that you can take to prevent your card from being stolen, however if your card is ever stolen there are steps that you should take if ever it does happen to make this bad experience go a bit more smoothly.
You should always have copies and emergency information for all your credit cards on file. By making copies of your credit cards, and writing down the emergency contact numbers for each card, it will make it easier to contact your credit card company when your card is stolen. The moment you realise your card has been stolen or misused, you need to call your card issuer immediately to cancel your card and by having the contact numbers on file you will be able to cancel the card quickly.
The moment you realise that your card has been stolen you should immediately phone the police as well as your credit card company. As time consuming and inconvenient as calling the policy may seem, it is necessary if you would like your card issuers to refund any unauthorised uses of the card.
You should always familiarise yourself with the credit card issuer’s procedures if ever your card is stolen while you are travelling abroad. You should know if your card issuer will arrange emergency cash advances, or if the company will replace your card immediately. Whenever you sign up with a credit card company you will want to consider what protection plan you wish to have.
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Thu 1st Mar, 2007
Posted in Card fraud, Financial news, Fraud, Identity theft, Online shopping, Spending, UK Finance at 12:08 pm by Steve Smith
KPMG, research accountancy firm, states that fraud has reached record levels last years. They claim that technology has helped crooked managers and hackers cheat both the government, industry, and individuals.
The number of fraud cases in court involving more than £100,000 increased to 277 in 2006, from 222 in 2005 said KPMG. This is the highest level since KPMG started its Forensics Fraud Barometer twenty years ago.
Statistics reveal some interesting facts. Company managers are behind 40 per cent of all fraud cases, totaling £837m.
“The figures produce a picture of a country where fraud is becoming worryingly deep-rooted,” said Jeremy Outen, a partner at KPMG’s forensics unit.
The government was the biggest target of fraudsters, with £312m lost through, tax evasion on items such as cigarettes and fuel.
Six cases last year accused NHS dentists of defrauding the government of nearly £3m.
Fraud in the financial sector reached £141m.
One gang, for example, used MP3 players to bug cash machines in bars, bingo halls or bowling alleys. They captured card details of victims as they withdrew cash. The cards were cloned to carry out fraudulent purchases worth more than £200,000, according to KPMG.
Many of the largest fraud rings are located in Russia like the e-bay gang who stole millions over a ten-year period.
Other popular scams that hit the average household includes emails asking for help to launder money, illegal lotteries, and fake bank emails asking for personal banking information.
The government warns all consumers to protect their consumer credit information, and to keep a sharp eye on their credit information.
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Tue 27th Feb, 2007
Posted in Bad Credit, Card fraud, Consumer debt, Financial news, Fraud, Identity theft, Personal debt, UK Finance at 11:53 am by Steve Smith
Mike Haley, head of Scambusters at the Office of Fair Trading (OFT), said:
“Scams affect not only individual victims, but also their families and communities, and can lead to debt, depression and health problems. Though anybody can be conned, it is always the most vulnerable who end up suffering the most.”
The OFT offers Scambuster’ booklet for concerned individuals.
There are many scams. The most popular include emails and phone calls where someone is dying and wants to donate money to charity, but their families will contest their wills. These people offer to donate the money through a victim, for a share, and in turn offer a reward.
Another common scam involves an email where someone has millions of dollars that they need to get out of the country and want a victim to help them and are willing to reward the person handsomely.
The most damaging is Phishing. This involves emails and web sites that ask consumers to enter their banking information.
Once fraudsters copied the HMRC logo onto emails that offered recipients a tax refund of £170. The victim clicked on a link to a bogus HMRC website and completed a form that asked for their bank details.
A Metropolitan Police spokesman said: “We are aware of these types of phishing frauds. We work with partners in the industry to actively investigate the bigger picture leading to them and many are on our Fraud Alert site on met.police.uk. We would be grateful if emails could be forwarded to us for possible inclusion on the website and to enable us to close down the server involved.
“Our advice is that if you receive something that appears to be too good to be true, then it generally it is.
“We advise anyone to forward suspicious correspondence to fraud.alert@met.police.uk and report to their local police station any money they have lost through such a scam.”
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Wed 21st Feb, 2007
Posted in Borrowing, Card fraud, Consumer Credit, Credit Card, Credit record, Debt management, Financial products, Spending, UK Finance, interest rates at 1:13 pm by Steve Smith
When people hear of a platinum credit card, some automatically associate platinum credit cards as a status symbol. However, today the rules and requirements on platinum credit cards have become more relaxed allowing these cards to be owned by an average person.
Platinum credit cards are typically offered to individuals who earn a certain amount per year. A platinum credit card has many benefits compared to a standard or gold card. If you frequently use your credit card for routine purchases and always pay the balance in full every month, then the platinum credit card would be a good choice.
These type of cards generally offer lower interest rates when compared to a standard or gold card. There may also be a low annual fee, or no annual fee on platinum cards. You also receive rewards such as air miles, reward points, discount points, and other offers. There are some platinum credit card companies that offer protection against accidental injury or involuntary unemployment. They also offer protection against credit card theft and loss, travel insurance, flexibility to share it with friends and family, and also online credit card fraud protection.
Platinum credit cards also offer high limits of credit, or sometimes no limit if you prove you have high earning power over a required amount. However, when you sign on for a platinum credit card you have to be aware of any hidden charges or fees. You also want to make sure that you will be able to keep up with the payments on such a high card. If you know that you will not be able to pay off the full balance monthly, then you should consider another card as platinum cards can have a negative effect on your credit history if you fall behind in payments.
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