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Are Credit Card Phone Fraud Scams on the Rise?

Home >>Credit card fraud security page 1 >> Are Credit Card Phone Fraud Scams on the Rise?

The Financial Fraud Action shows indication of an increase in credit card phone fraud. The customers as well as the lenders are becoming more conscious of online credit card phone fraud scams and fraudsters. This matter has reduced in the recent years due to the awareness of the customers and the online options that distract the fraudsters. However, there has been an increase in credit problem in the latest months that have caused many customers fraud and ID theft problems.

The different kinds of credit card deception scams over the phone

The fraudsters are conscious about the fact that the customers are confident as to what they should and should not do with their credit cards and what security details they should provide over the phone. So, they have made moves to thwart this by altering the way they operate.

Lenders & consumers have become more aware of online fraud scams & fraudsters are turning back to credit card phone fraud. What warning signs should consumers look for?

According to Financial Fraud Action UK there are indication of an increase in phone based credit card fraud. This matter has reduced in the recent years due to the awareness of the customers and the online options that distract the fraudsters. However, there has been an increase in credit card phone scams in the latest months that have caused many customers fraud and ID theft problems.

The different kinds of credit card deception scams over the phone

The fraudsters are conscious about the fact that the customers are confident as to what they should and should not do with their credit cards and what security details they should provide over the phone. So, they have made moves to thwart this by altering the way they operate.

The current phone scams may seem to be a bit different from the standard. Fraudsters may, for example, call up consumers and pretend to be their bank, card company or the police. The spiel here is that there has been some kind of fraud on the card already and they are calling to sort it out.

This involves them telling the card holder that they need their card and their PIN number urgently and that they will be sending a courier to collect it from them. Once they get both the card and the number that will allow them to withdraw cash, then they simply take out as much money as they can.

Why do People Fall for This Scam?

Fraudsters often target vulnerable people and their spiel here is designed to make it look like they are helping. People often fall for this scam because:

* The fraudster may claim to be from the security division of the card company or bank or from the police.
* They may openly say that they can't take the PIN over the phone (as per common banking practice) so have to have it sent.
* They scare the card holder into worrying about being de-frauded.
* They may be willing to give a number on which the individual can call them back to check them out.
* They use regular courier services that people will recognize.

These are relatively sophisticated methods compared to previous phone based credit card fraud scams. The problems that they cause may, however, be much worse. Voluntarily giving a card and its PIN to a stranger may well leave the card holder with no protection or avenues for compensation once the fraud is discovered.

How to Avoid Credit Card Phone Scams

Avoiding this kind of scam is far better than having to deal with the consequences. Consumers should:

* Never give or hand over their card and PIN in this way. A card company or bank won't ask for it as they have other security measures that can be used if they need to verify ID.
* Not assume that the fact that a reputable courier turns up to collect the card/PIN makes it OK. The couriers are being used without knowing what they are picking up or what is going on.
* Not call the number that a fraudster gives to check that they are who they say they are. This will invariably be a set-up. If in doubt hang up, find a card statement and call the bank/card company on that number to see if they have been trying to get in touch about a problem.

Bear in mind that this is just one type of credit card fraud and it may also be worth looking at general card fraud protection tips to make sure not to be caught out by other scams.

 
 
 
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