Inter Financial Weblog

 

Archive for Card fraud

New Payment Method May Increase Fraud

Monday, June 11th, 2007

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.

Posted in Borrowing, Card fraud, Consumer Credit, Consumer debt, Credit Card, Debt Consolidation, Financial news, Financial products, Spending, UK Finance | No Comments »

Home PIN Machines

Monday, June 4th, 2007

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.

Posted in Banking, Borrowing, Card fraud, Consumer Credit, Financial news, Fraud, Identity theft, UK Finance | No Comments »

Fraud Cost Increasing

Tuesday, March 13th, 2007

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.

Posted in Card fraud, Financial news, Fraud, Identity theft, UK Finance | No Comments »

« Older posts       Newer posts »