Keep your credit card safe from fraud this Christmas
Studies show that approximately 30 million of us will spend some of our money online in the run up to Christmas.
Keep your credit card safe from fraud this Christmas
17p in every pound is spent on the internet.”
That number is twice as many people as five years ago and shows how popular buying Christmas presents on the internet has now become. In fact, 17p in every pound is spent on the internet.
Experts are divided in opinion this year. Some say that the recession will slow festive spending both online and offline, while others disagree.
IMRG, a retail industry body, thinks that despite the credit crunch online sales will still rise because of a larger number of shoppers looking for good deals online.
"If really pushed, we'd probably say it'll be up around 15%, but that's very, very much conjecture," an IMRG spokesperson said.
Fraud risks
As the amount we spend online increases year on year so does the amount of money lost to fraudsters and identity thieves. The biggest fraud boom is in the area of ‘card-not-present’ crime where criminals use stolen details to make purchases online.
In the first half of 2008 the losses from this kind of crime totaled £96.9 million and that only represents a 6 month period.
This is why APACS has launched the ‘Be Card Smart’ Campaign through www.becardsmart.org.uk to raise awareness and tackle the issue of card-not-present crime.
How fraudsters operate
There are a number of sophisticated scams which fraudsters use to get hold of your card details.
Criminals who are good with computers can get your details from any website which does not offer the right level of security for your information.
Banks and most prominent online businesses use encryption to protect your information and keep it safe from fraudsters but some, less safe web stores still exist.
Social networking sites are another source of information for fraudsters as some people will post their date of birth, address, telephone number, email address and all kinds of other private information about themselves which then allows fraudsters to steal their identity.
Phishing is another way that criminals steal credit card information. The most common form of phishing comes as an email which appears to be from a reputable source such as a bank, financial institution online store or auction site.
It might ask for credit card details or just ask a user to confirm their account ID and password. Some telephone based fishing scams also operate, so be careful.
Experts issue warnings
Visiting websites such as Be Card Smart Online and paying attention during ‘Get Safe Online’ week is the best way to make sure you’re not added to the fraud statistics.
Phishing is the cause of a huge rise in fraud according to APACS, the Association of Payment Clearing Services.
This year it was up on last year by £17.9 million (in only the first half of the year) and it’s thought to be increasing even now.
"Banking and shopping online has made life easier and more convenient for consumers," Owen Roberts, an identity protection expert said.
"Identity theft is a fact of life. Falling victim can be hugely distressing."
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