According to figures released by Financial Fraud Action, card fraud has hit its highest half year record since 2009 with £216 million having been lost through credit and debit cards from Jan-June 2013. This year’s figure is 17% higher than what was recorded in same period in 2012.
The 3 million people who fall victim to different scams every year is just a representation of what almost half of the entire population could be experiencing, The Office of Fair Trading reported that victims lose an average of £1,167. Though many people understand some of the old scams including lottery scams. Nigerian email scammers and phishing, there are many others that scammers introduce every day to scam unsuspecting people.
Although financial institutions are using advanced technology like online shopping protection and PIN to combat fraud, the fraudsters have now turned to unsophisticated methods instead. For instance, some scammers call people pretending to be representatives from financial institutions or ISP trying to source personal details from people. This method is called vishing or voice phishing and may involve soliciting of card PIN, and other personal data.
Some may even make a claim that your computer needs some security upgrades in a bid to get to your home where they can get your online banking account details. This trend is widespread, with 25% of the population being targeted. Of those targeted, half are over 50 years.
Once the con artists get your account details, they usually spend your money to buy whatever they want. This can run into thousands of pounds depending on your account balance.Following the sporadic rise in online card fraud, it is very important to exercise caution whenever buying products online. In the first six months of 2013, a record, £142 million has been stolen from people.
Greater intelligence sharing between industry players could be the immediate solution to the online card fraud problem. This has been evidenced by reduced fraud rates in 2012 when banks started sharing information. This move has also been strengthened by the involvement of the technology and internet companies and the police since this has reduced phishing sites. This has however not eliminated all the scammers.