Recently, there have been several stories in the newspaper and television about identity fraud and how this type of crime is becoming more and more common. A few weeks ago, there was an article about a pensioner who was stung with 9,200 worth of fraud on his Barclaycard. Bob, from Exeter, was shocked to discover that a criminal had spent that amount on his credit card in just one day. The cheeky charlatan was able to make over 16 completed transactions, each over 500 at various Apple stores around the Bristol area by gaining Bob’s personal information over the phone.
This story is not unheard of lately as criminals and charlatans are becoming even more cunning than before to try and get their hands on your cash. There are straightforward things you can do to put off thieves. One of the easiest things you can do is cease all paper statements being sent to your home address. Smart fraudsters are able to recognise certain pieces of mail such as credit card statements and bills so they can use your details for fraudulent activity. If your bank does not offer this service, then you should think about purchasing a prepaid card.
Prepaid cards are like credit and debit cards – the only difference is that you have to load the card with money first in order to spend it. The good thing about prepaid cards is that you will not get sent paper statements, reducing the risk of identity theft considerably. Most prepaid cards offer paperless statements so you can track your balance and transactions 24/7, anytime, anywhere in the world either online, via your mobile phone or via SMS.
Another way criminals can hit you is by cloning your card. They will probably have access to several sophisticated types of machinery that can make an identical copy to your existing credit or debit card by replicating the magnetic strip on the card. This type of fraud is very common on holiday as most European destinations will swipe your card using the magnetic strip as opposed to the normal chip and PIN method we are used to in the UK.
If someone does happen to get hold of your credit or debit card details while you are holiday, what do you do? Run around trying to cancel every single card you own, that’s what. That’s why taking credit and debit cards is always a bad idea as they can be linked to several accounts you may have – leaving you even more open to be a target of fraud. What most people do nowadays is they take a prepaid card on holiday as they find this a much safer option than carrying around dozens of debit and credit cards as there are no links to any other accounts.
Finally, one of the safest precautions you can take when beating fraud is to maintain a regular check on your credit, in particular, your credit file. Make sure you keep a close eye on any requests that have been made in your name, particularly for credit cards, loans or bank accounts. If you have already had the displeasure of a poor credit rating thanks to criminals, don’t distress as there are easy procedures to help you restore your credit rating. Check out credit building prepaid credit cards on comparison websites to help you find a prepaid card to strengthen your credit file over the next few months.
This author is a consumer services analyst, focusing in bank cards and personal finance. He suggests reading a free 36 page guide called the ‘Essential Guide To Your Money‘. For more information, visit the Blue Sky Prepaid MasterCard website.
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Tags: card, credit, debit, Debt, education, finance, fraud, identification, mastercard, personal finance, prepaid, safety, security, theft