COMMENT
Guard Your Cards Against Internet Fraud

With Christmas only a few weeks away, many more of us will be investigating Internet retailers when buying gifts. After all, online shopping is convenient, easy and often saves a fortune when prices are compared to those in the shops.

Unfortunately, however, this seems to be the one area where increasing numbers of us are falling foul of fraud. Figures released today by the Association of Payment Clearing Services (APACS) shows losses from most types of fraud decreasing over the past year. But so-called "Card Not Present" fraud has risen by a whopping 29% over the past six months. And much of this is being committed online.

Interestingly, total card fraud losses were found to have actually decreased by 13% in the six months to the end of June 2005, compared to the same period in 2004 (from £252m to £219m). This decrease has been largely attributed to the impact of Chip and PIN technology, which seems to have reduced fraud involving stolen and counterfeit cards considerably . The new technology may also explain why criminals have turned to fraud that does not require a card to be present, such as that involving the Internet, telephone and mail order transactions.

So how are the criminals able to commit this fraud? Well, it seems the fraudsters are getting hold of our credit/debit card details and once armed with this information, using it to shop online. However, there are ways in which we can protect ourselves.

Here are some recommendations from APACS and CardWatch to guard your cards against online fraud:

1. Always log out when you've finished shopping online to protect your financial information.
2. Wherever possible, sign up for the secure online password system offered by Verified by Visa and MasterCard SecureCode
3. Use sites you can trust, that you either know or have had recommended to you.
4. Shop only on secure sites - look for the locked padlock or unbroken key symbol in the bottom right hand corner of the screen. The web address should also change from http to https.
5. Keep your PINs safe.
6. Keep copies of all orders and terms and conditions.
7. Finally, always protect your cards. Never leave cards or card details lying around and never let anyone else use your cards.

Follow these tips and protect yourself against Internet fraud.

You can find more information on protecting yourself against Internet fraud at the CardWatch website.