Published: 02/02/2010

We’ve just been tipped off about a spate of incidents involving an old-style phone scam which we want to bring to your attention.  Please forward this newsletter to your friends and family to help prevent them getting conned by these tricksters.

Fraudsters have been attempting to trick unsuspecting cardholders into revealing their card details by pretending to be from either their bank, Credit Card Company or one of the international card schemes – Visa and MasterCard.

The scam begins with the fraudster phoning up, typically claiming to be from the security or fraud department and saying that their records have flagged up a fraudulent transaction on the victim’s card. By seeming to offer assistance, the caller hopes to gain their victim’s trust.

The fraudster, who may already have some details about the person they are phoning - such as their address and card number - is really trying to find out the three-digit security code on the back of their victim’s card. The conman will claim that the amount of the fraudulent purchase can be credited back to the card if the individual divulges the three-digit number. 

However, beware, if the security code is revealed, the fraudster will use it to try and make fraudulent purchases over the telephone or internet using the victim’s card details.

The GOLDEN RULE is - never disclose any personal financial information to someone who has cold-called you over the phone – wherever they claim to be from.

If you have any doubts when approached in this way you should hang up and call the company back on a number that you know is correct. If you think you have already been a victim of this scam, you should speak to your card company as soon as possible.

As well as keeping your card details safe and secure, here are a number of other common sense steps that you can follow to help minimise the chances of you becoming a victim of fraud:

• Don’t let your cards or your card details out of your sight when making a transaction.
• Destroy, preferably shred, any documents or receipts that contain personal financial information when you dispose of them.

• Register your cards with Verified by Visa or MasterCard SecureCode.

• Do not keep your passwords, login details and PINs written down.
• Do not disclose PINs, login details or passwords in response to unsolicited emails or telephone callers claiming to be from your bank, the card schemes or the police.

• When entering your PIN in a shop or a cash machine use your free hand to shield the number from prying eyes or hidden cameras.

• Only divulge your card details in a telephone transaction when you have instigated the call and are familiar with the company.

• Make sure your computer has up-to-date anti-virus software and a firewall installed and switched on.
• Access internet banking or shopping sites by typing the address into your browser. Never go to a website from a link in an email and then enter personal details.

• Don’t access your online banking on a shared computer e.g. in a local library or on university campus.
• Shop at secure websites by ensuring that the security icon (locked padlock or unbroken key symbol) is showing in your browser window and where the URL starts https (the letter‘s’ indicates secure).
• Always log out after shopping and save the confirmation email as a record of your purchase.

Don’t miss our live webcast where you learn how to make your savings more tax efficient

We’ve teamed up with some investment experts from Fidelity who will be running a live webcast on Thursday 4^th February at 1pm answering your questions on how to make your investments more tax efficient

They will answer your questions on how to make the most of your tax allowances to keep your savings out of the tax man's hands.

Ask a question