12 ways to protect yourself from card fraud

Rachel Robson gives you the lowdown on how to prevent card fraud from happening to you...

Imagine this: You're standing in the supermarket having done your weekly shop. The kids are screaming and you just want to get home. You hand over your debit card to pay for your goods and breathe a sigh of relief that it's almost over.

It's at that moment the girl at the checkout tells you your card has been rejected.

No, no, that can't be right - you checked your account earlier in the week and you had sufficient funds in there. So you ask the girl to try again. She does so, but the outcome is the same.

You can hear the people behind you in the queue huffing and puffing at the delay and you start to feel a little embarrassed. This doesn't make any sense.

Only later do you discover that you've become a victim of card fraud and someone has helped themselves to a nice chunk of your money.

The facts

With the introduction of Chip and PIN back in 2004, it was hoped that card fraud levels would come down and security levels would increase. Yet according to research from LV= home insurance, it seems to have had the opposite effect, with over one in ten card owners claiming to be more lax with their details because of the newer system.

In fact, over the past 12 months, over eight million adults have given their Chip and PIN details to someone else to make a purchase for them, or to withdraw money from a cash machine - with a quarter of these falling victim to fraud.

Of course, even if you haven't passed on your Chip and PIN details to anyone, this doesn't automatically exclude you from becoming a victim of card fraud. It really can happen to anyone.

Finding out that someone else has been using your credit card or debit card to carry out illegal transactions is never a nice feeling. I should know - it's happened to me.

Quite often, fraudsters will copy a card and use it in countries yet to upgrade to Chip and PIN. Typically, these fraudsters will make a small transaction first to see whether they can get away with it, before making much larger purchases and draining your bank account.

Luckily for me, my bank spotted the dodgy activity on my account in the nick of time, and nothing got taken from my account - but it's not always that way.

And even if you've been a victim of card fraud before, don't think you're therefore immune from it ever happening to you again. Because you're not.

Prevention is better than cure

So what can you do to help protect yourself from becoming a victim? I've come up with 12 top tips to give you a helping hand.

1) Keep your PIN private

Most obviously, don't tell anyone your PIN - even if you completely trust them, it's not worth it. If you do hand over your PIN to someone else and later become a victim of card fraud, you may find that your bank refuses to refund any lost money if there's proof you've acted 'without reasonable care'.

Similarly, don't write down your PIN anywhere.

You should also use a different PIN for each card. Although this might test your memory somewhat, from a security perspective, you'll be much better off.

Finally, don't make your PIN something obvious such as your birthday or 1234.

2) Cover your PIN

Whenever you use a cash machine or Chip and PIN device in a shop, cover your PIN with your spare hand to prevent anyone else (or any hidden cameras) seeing.

It's also worth keeping an eye out for skimming machines at cashpoints. These are placed over the card slot and can copy card details. If you think something looks dodgy, don't use the machine and report it to the bank.

3) Check your bank statements thoroughly

It might not be the most exciting way to spend half an hour or so, but always take time to sit down and examine your bank statements fully. Ensure you recognise all of the transactions and if you spot anything unfamiliar, contact your bank immediately. Keep your receipts so that you can check them against your statements.

4) Shred your documents

Once you've checked everything on your bank statements, shred all of the documents as well as your receipts.

5) Don't let your card out of your sight

When paying for something in a shop, bar, or restaurant, don't allow your credit card or debit card be taken out of your sight as this increases the risk of your card being cloned.

6) Only carry what you need

Only carry the cards you really need in case your wallet or bag is stolen, and don't carry cards loose in your bag or pocket.

7) Keep your bank up-to-date with your contact details

If you're moving to a new property, make sure you ask the Post Office to redirect your mail - ideally for a year. Update all banks with your new address immediately and if you're waiting for a new card, make sure you know when to expect it and cut up your old cards as soon as they expire.

You should also ensure your bank has your correct phone number in case the bank needs to contact you to check if a transaction is genuine.

8) Keep a list of contact details

Note down the contact details to use if your debit or credit card is lost or stolen and keep these separate from your cards.

9) Be careful on the web

If you're using your credit/debit card to do a spot of shopping on the internet, make sure you only use well-known websites that display a secure padlock logo in the address bar at the top of the page.

Sign up to Verified by Visa and MasterCard SecureCode to help prevent online fraud and ensure you have a decent anti-virus package on your computer - here's a guide to free anti-virus software. Find out more in Twelve tips to keep you safe online.

10) Watch out for phishing

If you receive an email from what appears to be your bank asking for your bank details, don't reply and don't click on any links. Your bank will never ask for personal details or ask you to confirm a password.

11) Don't give away too much on the phone

Similarly, if you receive a phone call from your bank, be wary. If you're being asked to hand over your card details, hang up and phone the bank yourself to ensure the call is genuine.

12) Be careful when going abroad

It's a good idea to inform your bank or card provider if you're going abroad and always use a safe rather than leaving your cards in the hotel room.

Hopefully by following these 12 tips, you'll be able to prevent card fraud from happening to you. But if it does happen, tell your bank immediately and report any loss or theft to the police. For further information, check out the Card Watch website.

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