FOOL SCHOOL
How To Keep Your Credit Card Safe

July 30, 2004

Did you know that there are more than 90 million credit, debit and store cards in the UK? It's a huge number and the potential for fraud is enormous.

Although, according to APACS, credit card fraud decreased by 5% to £402m in 2003 it remains a serious concern.

About a third of this comes from counterfeit cards, which usually involves a practice known as 'skimming'. This is where your card is swiped in special machines that copy the data on the magnetic strip so that the information can be reproduced on a fake card. Companies are fighting back with the use of holograms and special chips but the latest idea is to introduce a Personal Identification Number at the point of sale. In the meantime, make sure that you only use it with trusted companies and that you never let your card out of your sight.

Another third of all credit card fraud comes from lost or stolen cards where the use of the card tends to be opportunistic rather than organised. Again, PINs are planned to counteract this problem but it's not going to be a final solution.

Unfortunately, another huge contribution to the fraud problem occurs because the cardholder has written down their PIN and has kept it with their card in a purse or wallet that is subsequently lost or stolen! It would help if consumers weren't so careless!

Anyway, here are some tips to ensure that you're not a victim of credit card fraud:

• Don't keep your PIN numbers with your cards. In fact, try and memorise them - and never disclose them to anyone else.
• Keep your receipts to check them against your monthly statements so that you can report any transactions you don't recognise.
• Report all instances of lost or stolen cards immediately.

Credit card companies aren't perfect, I grant you, but then neither are we. Sometimes they have to deal with consumers who've either been careless with their spending, or with the cards themselves. Please make sure you're not one of them.

Finally, one thing you could do right now, if you're near a photocopy machine and you have your cards with you, is to make a copy of them, front and back. Keep this in a safe place (not in your wallet!) so that, if you do manage to lose your cards, you have an instant record of the information you'll need to pass on when you report the incident.

Find the right card for you in our credit card centre.