Protect Yourself Against Credit Card Fraud

By Alison Hunt | 17 August 2005

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Fraud is a growing crime in the UK and more and more of us are falling foul of it. As a result, we're becoming more careful regarding the security of our credit cards and personal information. But are we choosing products that are more upfront about being security conscious, too?

A recent report from TescoPersonal Finance found that, when presented with a range of cards with similar rates, three out of four people (79%) would choose the card that had clearly highlighted its security features. Tesco believes that security features have come into focus in the minds of card holders as a quarter (25%) have had their card lost or stolen and one in seven (14%) have had their identity used fraudulently.

But does a card with highlighted security features present a better choice than one without? Interestingly, most credit cards offer the consumer the same level of protection against fraud. Should your card be used fraudulently for online purchases you will be covered by the Consumer Credit Act 1974 and European E-commerce Directive 2002. These ensure that we are protected from fraud whenever we use our cards.

However, it may not be the cover afforded by the security-conscious providers that we are most interested, but the mere fact they have taken the trouble to highlight their concerns in the first place. Tesco found that over half (52%) of all credit card holders were of the opinion that companies who clearly highlight their security features take the issue more seriously than those who do not. A third (33%) also feel that they do not know enough about the protection that their existing provider offers them.

If you're concerned about security regarding your credit card, why not take note of the following advice given by The UK Payments Association (APACS):

1. Never reveal your PIN number to anyone and make sure you shield the keypad when using an ATM or chip and PIN reader.
2. Check your credit card statements regularly. If you suspect any fraudulent activity is occurring on your account, contact your provider immediately. Most providers have a 24-hour customer service number that they can be reached on.
3. Never let your card out of your sight. Many restaurants now operate hand held card readers, which will allow you to pay at your table.
4. When purchasing items online or over the phone use only reputable companies.
5. Buy a shredder and use it. Shred any personal documentation before placing in the bin and that means those credit card transaction receipts too.
6. Never, ever send your card details via email. Email is incredibly insecure and if a company asks you to do this to make a purchase, find an alternative vendor, which uses some form of secure online shopping encryption method such as WorldPay.

Finally, it's well worth getting a copy of your credit file every six months from one of the three credit agencies (Experian, Equifax or CallCredit) in order to check that no fraudulent activity has been set up in your name. It's not expensive; it can cost just £2 but can provide essential peace of mind.

Alternatively, you can save yourself the hassle of writing off twice a year and use a tool such as Experian's CreditExpert instead. Costing around £49.99 a year, this will allow you to view your credit report online, whenever you wish. And Fools can benefit from a free 30-day trial.

So keep an eye on those credit cards and guard against fraud!

> Compare cards in our credit card centre.