Money Insider: Don't fall for this phoney call card scam

 

A shocking new report from the UK Cards Association last week revealed that criminal gangs are increasingly targeting elderly and vulnerable bank customers with a new scam involving debit and credit cards.

It starts with a person being called by a criminal posing as someone from their bank, or even the police.

The caller tells the victim that their credit or debit card needs collecting and replacing, following fraud on their account. The caller then gets the victim to hang up and phone their bank for confirmation.

However, the criminal stays on the line, tricking the victim into believing they are on a new call and their bank is at the end of the line.

The criminal then asks the person to divulge their PIN or asks them to key it into their telephone keypad, before sending a courier to their home to collect the card. The victim is told that the card is going to the bank, but of course it ends up in the hands of the fraudster along with the PIN obtained during the call.

Figures released by Financial Fraud Action UK and the UK Cards Association show that this particular con has already resulted in more than £7.5m worth of fraud on credit and debit cards in the first eight months of this year. Over that time, more than 1,600 bank customers have fallen victim, with average losses per case amounting to almost £4,200.

Police are warning of a spike in reported cases, with intelligence showing that the estimated amount stolen through this method so far this year is already 10 times the amount stolen during the whole of 2011.

The deception, undertaken by criminal gangs, tends to target elderly bank customers, with fraud intelligence showing that the average age of victims is 69. Hot spots for this crime include London, Surrey and Strathclyde.

If you've got elderly neighbours, friends or relatives, take five minutes to help prevent them becoming one of the next victims.

Spreading the word will not only cut the number of successful scams, but more importantly will also reduce the unnecessary stress and misery that this type of deception causes.

If customers are victims of fraud, they will not suffer any financial loss, but by following these three steps, they can prevent becoming a victim in the first place:

* Your bank or the police will never ring you to tell you they are coming to your home to pick up your card. Never hand it over to anyone who comes to collect it.

* Your bank will never ask you to authorise anything by entering your PIN into the telephone. Never share your PIN with anyone – the only times you should use your PIN are at a cash machine or when you use a shop's chip-and-PIN machine.

* Always speak to the bank securely. Before calling your bank, make sure you can hear the dial tone. Only call your bank on an advertised number.

Will peer-to-peer customers benefit from new regulation?

It was announced last week that the new market regulator, the Financial Conduct Authority, will oversee the borrowing and lending activities of peer-to-peer (P2P) providers from 2014.

In the main it's good news for the established and increasingly popular P2P companies, as it will give the sector additional credibility. Consumers should also take confidence from the fact that the industry is being taken seriously by government.

There's no doubt the regulator will look closely at the way the P2P providers mitigate the risk for their customers (as there is no Financial Services Compensation Scheme protection) and this should be a positive step for providers and consumers alike.

The main downside of this move is that the Government gets the regulation wrong and creates too much of a cost burden that dulls the P2P edge over the banks.

If you look at the rate of return you can get from the likes of RateSetter, Zopa and Funding Circle, it is in a different league compared to the dismal interest rates from mainstream banks.

Let's hope for the sake of UK savers and small businesses that the regulatory costs don't have a negative impact on P2P's current competitive pricing.

Andrew Hagger is an independent personal finance analyst at moneycomms.co.uk

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

Arts and Entertainment
Joe Cocker performing on the Stravinski hall stage during the Montreux Jazz Festival, in Montreux, Switzerland in 2002
musicHe 'turned my song into an anthem', says former Beatle
News
Clarke Carlisle
sport
Sport
footballStoke City vs Chelsea match report
Arts and Entertainment
theatreThe US stars who've taken to UK panto, from Hasselhoff to Hall
PROMOTED VIDEO
Life and Style
Approaching sale shopping in a smart way means that you’ll get the most out of your money
life + styleSales shopping tips and tricks from the experts
News
newsIt was due to be auctioned off for charity
News
Coca-Cola has become one of the largest companies in the world to push staff towards switching off their voicemails, in a move intended to streamline operations and boost productivity
peopleCoca-Cola staff urged to switch it off to boost productivity
Environment
Sir David Attenborough
environment... as well as a plant and a spider
Voices
'That's the legal bit done. Now on to the ceremony!'
voicesThe fight for marriage equality isn't over yet, says Siobhan Fenton
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    The Jenrick Group: Night Shift Operations Manager

    £43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

    SThree: Trainee Recruitment Consultant - LONDON

    £20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

    SThree: Graduate Recruitment Consultant

    £20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...

    Day In a Page

    Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

    'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

    Yazidi girls killing themselves to escape rape and imprisonment
    Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

    Ed Balls interview

    'If I think about the deficit when I'm playing the piano, it all goes wrong'
    He's behind you, dude!

    US stars in UK panto

    From David Hasselhoff to Jerry Hall
    Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

    Grace Dent's Christmas Quiz

    What are you – a festive curmudgeon or top of the tree?
    Nasa planning to build cloud cities in airships above Venus

    Nasa planning to build cloud cities in airships above Venus

    Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
    Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

    Clocks, rifles, swords, frogmen’s uniforms

    Surrounded by high-rise flats is a little house filled with Lebanon’s history
    Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

    Four months after the bombardment, Gaza’s wounds are yet to heal

    Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
    Gastric surgery: Is it really the answer to the UK's obesity epidemic?

    Is gastric surgery really the answer to the UK's obesity epidemic?

    Critics argue that it’s crazy to operate on healthy people just to stop them eating
    Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

    Homeless Veterans appeal: Christmas charity auction

    Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
    Pantomime rings the changes to welcome autistic theatre-goers

    Autism-friendly theatre

    Pantomime leads the pack in quest to welcome all
    The week Hollywood got scared and had to grow up a bit

    The week Hollywood got scared and had to grow up a bit

    Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
    From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

    Panto dames: before and after

    From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
    Thirties murder mystery novel is surprise runaway Christmas hit

    Thirties murder mystery novel is surprise runaway Christmas hit

    Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
    Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

    Anne-Marie Huby: 'Charities deserve the best'

    Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
    The botanist who hunts for giant trees at Kew Gardens

    The man who hunts giants

    A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there