New credit card scam nets £1million in 4 months in UK
Fraud warning: new card scam nets £1m in four months
Daily Telegraph By Rosie Murray-West | 7 hours ago
Bank customers are falling victim to a new and sophisticated type of credit card fraud which has increased threefold since the beginning of the year.
Victims are telephoned by fraudsters and duped into revealing their PIN and then handing over their bank card to a courier in this new form of crime, which has seen more than £750,000 taken from customers since the beginning of the year.
The scam involves a person being called by someone claiming to be from their bank. They are told that their debit or credit card needs collecting as it needs replacing following fraud on their account.
The caller often suggests that the person hangs up and calls the bank back if they want to ensure the call is genuine, but stays on the line, tricking the person into thinking they’re calling their bank. The criminal will then ask the person to key in their PIN number, before sending a courier to collect the card. The victim is told the card is going to the bank to be changed but it is actually delivered to the fraudster to use along with the PIN obtained during the scam.
DCI Paul Bernard, head of the Dedicated Cheque and Plastic Crime Unit, said: “Many of us feel confident that we can spot fraudsters but this type of crime can be sophisticated and could happen to anyone. While we have seen an increase in this type of fraud, we know collectively we can stamp it out. “If you become a victim of this type of crime, you should contact your bank in the first instance. If you have friends or relatives who you feel may be vulnerable to this, please help them to be more aware of the potential risks and what to look out for. Remember, if you are the innocent victim of card fraud you will not suffer any financial loss.”
More than £1.5m has now been lost to this crime, with the same amount £750,000 stolen in the first four months of 2012 that was stolen during the whole of 2011.
The Payments Council found in a survey of account holders that more than three quarters feel confident that they would be able to spot a fraudulent telephone banking call. However, after hearing how the card fraud phone scam works, over half of the 4,000 people surveyed were surprised by how sophisticated it was, one third worried they were more vulnerable than they thought and four fifths felt that anyone could be a potential victim of the fraud.
DCI Bernard said that customers should follow some simple tips to avoid being a victim. These include making sure you can hear the dial tone when you call your bank, and never handing over your card. Your bank or the police will never ring you and tell you that they are coming to your home to pick up your card, so never hand it over to anyone who comes to collect it.
He added "Your bank will never ask you to authorise anything by entering your PIN into the telephone. The only times that you should enter your PIN are at a cash machine or when you use a shop’s chip and PIN machine".
This will not be limited to the UK, so please make sure your family, friends & neighbours are aware of this fraud.
I would like to believe that anyone who calls you up or emails you to request for your credit card info/bank account info/paypal and any other financial-related info is a scam. I hope people would be more prudent with regards to verification before giving out any information. Money is not easy to earn.
The more the public becomes aware of fraud, the more devious scam artists become.
This scam works because the scammer knows your name, your address and the bank that you use. This immediately puts you at ease.
How does the scammer know this information? Your name and address can be found on numerous public records and the name of your bank could be a guess (making it a pure numbers game) or more targeted e.g. by bin surfing or buying a sucker's list (if I know your VISA card number, I know what bank you use).
The scammer calls you to warn that there has been a suspected fraud on your card (as many banks do) and they ask you to call the bank back before providing anything confidential. They then pretend to hang up and use a fake a dial tone and dialling noises on the line to make it sound like you are making a new call but you are not.
Your outgoing "call" is answered and you hear a professional sounding pre-recorded message prompting you to enter your card details and your pin number. This may worry you for a moment but as far as you are concerned it was you who called the bank, not the other way round. The touchtone on your phone confirms the pin to the scammers and you are "transferred" to a new operator who arranges for the card pickup and replacement.
You think there have been two calls: one incoming to which you provided no information and one outgoing to which you provided your pin to an automated process you thought was set up by your bank. In reality it's all one incoming call, seamlessly put together by fraudsters to con you.
It looks like this scam has been rehashed without the courier element. They describe holding the line to fake a secondary call as "open to connect".
It's interesting to see that Nat West only paid out on an ex gratia basis: this means they will deny liability in future cases, of which there will be many.
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