press release

Press Release - 11/07/05

ID THEFT PROTECTION PRODUCTS COULD LULL CONSUMERS INTO FALSE SENSE OF SECURITY – AND MAY NOT PAY OUT, WARNS MONEYNET

BANK account and credit card holders are being advised not to be lulled into a false sense of security just because they have signed up with a provider’s fraud protection policy.

With the growing threat of ID theft in the shape of bank account and credit card cloning, lenders, card companies and credit reference agencies increasingly offer customers a range of anti-id theft services.

But online financial data analysis company Moneynet (www.moneynet.co.uk) today warns that many of these policies are flawed in that they do not offer full financial compensation to victims of fraud – and urges credit card and account holders to take simple measures to protect themselves against the rising problem of id theft.

“We have seen a number of providers – and even credit reference agencies such as Experian – marketing protection services in recent months,” said Moneynet chief executive Richard Brown.

“Yet few, if any, of these services appear to offer insurance protection against actual financial loss in the event that a credit card company, for example, refuses to cover the loss – and surely this is what consumers really need,” he said.

“And if consumers are going to take out cover, they should also be aware that the cost of protection can vary considerably,” he added.

“As our table shows, Royal Bank of Scotland’s service, while very comprehensive, will cost its customers more than £80 a year, while Barclaycard charges less than half that for a similar level of cover. However, the full terms and conditions of the credit card should also be taken into account and the id protection products should not be considered in isolation.

“Some people may feel they can go a long way to protecting themselves by taking practical steps to protect against identity fraud: basics include buying a paper shredder, keeping a close eye on statements, checking your credit report, keeping passwords and PIN secure, and not giving out personal information over the phone, web or by post unless the recipient is known and trusted.

“While ID protection services may have a degree of value, they shouldn't be used as a reason to take an otherwise uncompetitive product,” warned Brown.

And as the credit card industry moves over to the Chip and Pin system, Brown also voiced concerns that card firms will deny fraud claims on the basis that card holders have not kept their Pin number secure.

“Fraud is clearly a growing thorn in the side for consumers. It is clearly important that people feel their personal financial details are secure, but they should be aware that, even though they have a protection policy in place, they may still face financial headaches while negotiating with their lender or credit card company to have their losses reimbursed,” said Brown.

MONEYNET SELECTION OF FRAUD PROTECTION POLICIES

PROVIDER	COST	COVER	NOTES	MORE INFO

RBS Privacy Guard	£6.99 per month (free £10 voucher to buy a shredder if insurance taken out in first six months)	Helpline & information> Covers any financial service or institution Help to resolve case and regain identity Unlimited access to credit reports Credit alerts Credit Scoring Insurance cover for any legal costs	Available to RBS customers only	0800 032 2400

BARCLAYCARD Identity Protection Plan/Service	£49.99 per annum offline or £39.99 online or Free for basic service level	Helpline & information Covers any financial service or institution Help to resolve case and regain identity Unlimited access to credit reports Personal case worker Valuable document registration £35,000 insurance cover for legal fees	Available to Barclaycard customers only	0870 154 0101

EXPERIAN CreditExpert	£49.99 per annum	Helpline & information Covers any financial service or institution Help to resolve report queries Unlimited access to credit reports Credit alerts Credit tools & calculators National credit score optional extra	Available to anyone	0800 656 9000

MORE TH>N Identity Theft Service	From £1.50 per month	Legal helpline/mediation service Covers any financial service or institution Legal documents to help repair credit status £50,000 insurance cover for legal fees	Available to MoreTh>n Home Insurance Policy holders only	0800 300 699

CAPITALONE Identity Theft Assistance	Free of charge	Helpline & information Covers any financial service or institution Help to resolve case and regain identity	Available to new No Hassle Platinum Card holders only	0800 952 5150

CITI CARD Identity Theft Solutions	Free of charge	Helpline & information Help to resolve fraud on Citicard	Available to CITI card holders only	0870 908 6000

PRESS ENQUIRIES

Richard Brown, Chief Executive, 0208 313 9030

David Andrews/Cathy Tully, David Andrews Media Ltd 07941 255855 / 01273 774109 / 07747196854

Consumer enquiries: info@moneynet.co.uk / www.moneynet.co.uk

Moneynet.co.uk is the UK's longest established online personal finance research and data analyst company. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.

A DAVID ANDREWS MEDIA LTD - RELEASE FEBRUARY 2005