Lately, several stories keep cropping up in the news that has us turning up the volume. We hear about identity fraud more and more over the last few months as this is becoming a hot topic, especially in this current economic climate when money is so tight. Just the other day, a pensioner was duped out of nearly 10,000 worth of fraud on his Barclaycard. Bob, from Exeter, was astonished when he found out that swindlers had spent 9,200 on his credit card in one day! The crooks then spent the whole day in various Apple stores across Bristol making 16 transactions over the value of 500 each time. They were able to gain information about Bob by simply pretending to be him over the phone!
We hear about this kind of story on a regular basis nowadays as criminals and fraudsters have means to all kinds of devices to trick the unassuming public. However, there are simple things you can do in order to prevent yourself becoming the next target. One of the simplest ways that criminals can have access to your personal or financial details is to intercept your post. Mail that is easily recognisable such as bank statements and utility bills are prime targets for fraudsters. One easy way to prevent this is by stopping all your paper statements and going paperless. If your bank does not provide this service, then you should consider purchasing a prepaid debit card.
Prepaid debit cards work very similarly to credit and debit cards apart from the fact that you have to load funds onto the card first before you can start using it. The good thing about prepaid debit cards is that there are no paper statements sent to you so your chances of being a victim of identity theft are reduced significantly. With prepaid debit cards, you are able to track your balance and transactions instantly and in real time online, via your mobile phone and via SMS.
A smart way tricksters can access your personal data is by cloning your credit or debit card with slick machinery that can copy the magnetic strip on your card. Once they have replicated this magnetic strip, they have access to all your information. This type of fraudulent behaviour is widespread in Europe, making tourists easy targets for criminals. Many European hotels and restaurants will take payments by swiping your card as opposed to asking you to enter your PIN – this is quite risky.
If someone has cloned your card, what can you do? The chances are that if someone has managed to steal all your financial details whilst you are on holiday, the only thing you can do is cancel all your cards as they are probably linked to one main account. A helpful way of securing your cash whilst abroad is to invest in a prepaid card. Because there are no links to any bank accounts, your cash is secure and you have peace of mind knowing that you won’t be a victim of fraud.
Lastly, to be extra vigilant when it comes to your personal or financial details make sure you take the time out to check your credit file on a regular basis. In particular, be very observant of any applications made for credit cards, loans or bank accounts in your name. The last thing you need is someone obliterating your credit rating. If you have been victim to this kind deceitful behaviour, then fear not. There are several means to re-establish your credit rating. One of the quickest ways is to purchase credit building prepaid cards which are designed for people with poor credit files. Over time, using these prepaid cards, you should see a considerable improvement in your credit rating.
This author is a consumer services researcher, specializing in bank cards and personal finance. He suggests reading a free 36 page guide called the ‘Essential Guide To Your Money‘. For more information, go to the Blue Sky Prepaid MasterCard website.