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

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at

Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

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

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    SThree: HR Benefits Manager

    £40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

    Recruitment Genius: Office Manager / Financial Services

    £30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

    Jemma Gent: Year End Accountant

    £250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

    Jemma Gent: Management Accountant

    £230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

    Day In a Page

    HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

    Scientists hail daily pill that protects against HIV infection

    Breakthrough in battle against global scourge – but will the NHS pay for it?
    How we must adjust our lifestyles to nature: Welcome to the 'Anthropocene', the human epoch

    Time to play God

    Welcome to the 'Anthropocene', the human epoch where we may need to redefine nature itself
    MacGyver returns, but with a difference: Handyman hero of classic 1980s TV series to be recast as a woman

    MacGyver returns, but with a difference

    Handyman hero of classic 1980s TV series to be recast as a woman
    Tunnel renaissance: Why cities are hiding roads down in the ground

    Tunnel renaissance

    Why cities are hiding roads underground
    'Backstreet Boys - Show 'Em What You're Made Of': An affectionate look at five middle-aged men

    Boys to men

    The Backstreet Boys might be middle-aged, married and have dodgy knees, but a heartfelt documentary reveals they’re not going gently into pop’s good night
    Crufts 2015: Should foreign dogs be allowed to compete?

    Crufts 2015

    Should foreign dogs be allowed to compete?
    10 best projectors

    How to make your home cinema more cinematic: 10 best projectors

    Want to recreate the big-screen experience in your sitting room? IndyBest sizes up gadgets to form your film-watching
    Manchester City 1 Barcelona 2 player ratings: Luis Suarez? Lionel Messi? Joe Hart? Who was the star man?

    Manchester City vs Barcelona player ratings

    Luis Suarez? Lionel Messi? Joe Hart? Who was the star man at the Etihad?
    Arsenal vs Monaco: Monaco - the making of Gunners' manager Arsene Wenger

    Monaco: the making of Wenger

    Jack Pitt-Brooke speaks to former players and learns the Frenchman’s man-management has always been one of his best skills
    Cricket World Cup 2015: Chris Gayle - the West Indies' enigma lives up to his reputation

    Chris Gayle: The West Indies' enigma

    Some said the game's eternal rebel was washed up. As ever, he proved he writes the scripts by producing a blistering World Cup innings
    In Ukraine a dark world of hybrid warfare and murky loyalties prevails

    In Ukraine a dark world of hybrid warfare

    This war in the shadows has been going on since the fall of Mr Yanukovych
    'Birdman' and 'Bullets Over Broadway': Homage or plagiarism?

    Homage or plagiarism?

    'Birdman' shares much DNA with Woody Allen's 'Bullets Over Broadway'
    Broadchurch ends as damp squib not even David Tennant can revive

    A damp squib not even David Tennant can revive

    Broadchurch, Series 2 finale, review
    A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower: inside the mansion of Germany's 'Bishop of Bling'

    Inside the mansion of Germany's 'Bishop of Bling'

    A Koi carp breeding pond, wall-mounted iPads and a bathroom with a 'wellness' shower