Bank card & cheque fraud

Criminals steal your bank cards or chequebook; or they obtain your card or account details, allowing them to take money from your account or run up credit in your name. You’ll usually notice this by seeing unfamiliar transactions on your statements, or suddenly finding that you’ve exceeded your overdraft limit or credit limit and your card is refused when you try to make a purchase.

Here are some of the ways a fraudster could steal money from you:

A fraudster uses a device to capture your card information as you are withdrawing money from an ATM (Cloned card fraud). The fraudster then uses this information to take money from your account in a shop, online or from an ATM.

A fraudster counterfeits your bank card by using a device to capture the card and account information embedded in your card’s magnetic strip. This is often known as ‘skimming’. The fraudster then uses this information to carry out fraudulent transactions in countries where chip and PIN technology is not supported.

The fraudster may also use this information in transactions where the card doesn’t have to be physically seen by the retailer or merchant. For example, when shopping online; buying goods by telephone or mail order; or using cardholder activated terminals, such as ticket machines.

In this case, fraudsters use your card before you are able to report it as lost or stolen. A new or replacement card may also be stolen before you receive it. For example, if you have moved address recently and your mail isn't redirected or if your mail is delivered to a communal mailbox.

A fraudster may have stolen enough information about your identity and financial affairs to take over your account or to impersonate you. The fraudster will gain access to your account after getting through security online, at a bank branch or call centre, or by teaming up with someone inside the organisation that holds your account. If the fraudster can impersonate you, he or she will open accounts in your name and then defraud them.

Cheque fraud operates in a number of ways. For example, a fraudster pays you for goods or services using a stolen cheque; or deposits a fraudulent or stolen cheque into your account; or steals individual cheques or a cheque book from you.

Payment notifications: If you have online banking/apps, set up your notifications to come through whenever you make a payment, so you know when it wasn’t you.

Couriers: Your bank or the police will never send a courier to your home to collect bank cards, cash or other valuables.

Report missing bank cards and cheques: Keep your bank cards and cheques in a safe space. Inform your bank as soon as possible about any missing bank cards or cheques.

Review your financial statements: Check your bank statements regularly and report any unrecognised transactions to your bank immediately.

If you have made a payment: Inform your bank as soon as possible, they can help you prevent any further losses. Monitor your bank statements regularly for any unusual activity.

Identity theft: If you have shared personal or financial information, and suspect your identity may have been stolen, you can check your credit file quickly and easily online. You should do this every few months anyway, using a reputable service provider and follow up on any unexpected or suspicious results. You can also sign up for Cifas services which can help to protect you against fraud.

You could be targeted again: Fraudsters sometimes re-establish contact with previous victims claiming that they can help them recover lost money, this is just a secondary scam. Hang up on any callers that claim they can get your money back for you.

Before you go away:

• only take cards with you that you intend to use; leave others in a secure place at home
• make sure you have made a note of your card company’s 24-hour contact phone number
• make sure your card company has up-to-date contact details for you, including a mobile number if possible
• if your cards are registered with a card protection agency, ensure you have their contact number and your policy number with you.

When you are away:

• take the same precautions as you would in the UK. Look after your cards and card details, and shield your PIN with your free hand when typing it into a keypad in a shop or at a cash machine
• consider wearing a concealed money belt to keep your cards, cash and traveller’s cheques safe.

When you get back:

• check your card statements carefully for unfamiliar transactions
• if there are any, report them to your card company as soon as possible.

When banking online:

• make sure your computer has up-to-date anti-virus software and a firewall installed. Think about using anti-spyware software. Download the latest security updates, known as patches, for your browser and for your operating system
• before you bank online, ensure that the locked padlock or unbroken key symbol is showing in your browser.When a connection is secure, the beginning of your bank’s internet address should change from ‘http’ to https’
• be wary of unsolicited emails - known as phishing emails - asking for personal financial information. Your bank or the police would never contact you to ask you to disclose your PIN
• ensure your browser is set to the highest level of security notification and monitoring. The safety options are not always activated by default when you install your computer.
• always access internet banking sites by typing the bank’s address into your web browser. Never go to a website from a link in an email and then enter your personal details.

When shopping online:

• sign up to Verified by Visa or MasterCard SecureCode whenever you’re given the option while shopping online. This involves you registering a password with your card company
• only shop on secure sites. Before submitting your card details, ensure the locked padlock or unbroken key symbol is showing in your browser. The retailer’s internet address will change from ‘http’ to ‘https’ when a connection is secure
• never send your PIN over the internet
• print out your order and keep copies of the retailer's terms and conditions, returns policy, delivery conditions, postal address (not a post office box) and phone number (not a mobile number).