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Archive for Identity theft

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 »

Ways An Identity Theft Gets Access To Your Information

Friday, May 18th, 2007

Identity theft is a crime where a criminal obtains your personal information such as your credit card numbers, bank information, address, and phone number or birth date.  With this information the thief can then access your financial accounts, open accounts or apply for credit under your name and basically steal your identity.  Identity theft is becoming a rising crime with many people falling victim.  However, there are steps that you can take to reduce the chances of this crime happening to you.  By understanding where an identity thief may obtain information, or how they obtain your personal information you can minimise the possibility of becoming a victim to identity theft.

Although different methods are used, some of the most common practices, or ways that criminals obtain your information is by digging through your bin.  By digging through your trash, the thief is hoping to find a discarded bank statement, credit card bill or other pieces of mail that will have your personal information.  That is why it is important that when you dispose of your statements or other documents that you shred or tear it up before tossing it into the bin.

Phishing is a technique that is done over the Internet via email.  The criminal will pretend to be a representative from a financial institution and will send you emails regarding your account, stating that they have some issues with your account that need to be sorted out and they attach a link that will lead you to a website where you are able to fix the problem.  However, when you log on to the website it will appear to be official, however it’s a total scam where they will ask you to verify your personal information which the thief can then use.  Never respond to emails from a bank or credit card company, as they would never email you if they had any issues.  A legitimate company would mail you or phone you regarding any problems.

By making yourself aware of some of these scams, you will protect yourself from falling victim to this increasing crime.  You can search online for more information on how to protect yourself from these types of criminal acts.

Posted in Borrowing, Consumer Credit, Fraud, Identity theft, UK Finance | No Comments »

Your Credit Record

Tuesday, May 15th, 2007

The history of your finances will affect your chances of obtaining credit or a personal loan in the future.  To help protect your financial future, one thing you can do is to check your credit report and improve it, as it is your credit report that many lenders review when determining whether or not they want to lend to you.

Your credit report is a personal history of your finances and will list information such as credit card payments, details of loans, mortgages, and your payment history on your accounts.  A credit report will also confirm your current address and will specify what organisations have searched your credit report.  With this information an organisation will then generate a credit score.  With your financial information and your credit score, a lender will then decide whether or not they should lend to you and it will also help them determine what interest rate to give you.

As you are reviewing your own credit report and you notice anything unusual or suspicious on your credit report, then you will need to send a query report to one of the credit report agencies to investigate the matter.  You can also contact them if you want to change or update any personal information.

Whenever you are searching around for credit, ask for a quotation before making a formal application.  As lenders need to check your credit history to determine the amount they can lend you and the interest rate they will charge, make sure that they make a quotation search rather than a full credit application.  If you have a number of credit application searches listed on your report, subsequent lenders may feel that you have applied for an unmanageable level or credit, or they may suspect fraud.

Posted in Borrowing, Consumer Credit, Consumer debt, Financial products, Fraud, Identity theft, interest rates, mortgages, Personal loans, UK Finance | No Comments »

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