Swiping back at the card fraudsters

ON a Saturday morning in August, 30-year-old Lindsay Wilson visited a cash machine with her young daughters, Hannah and Isla, but her request to withdraw money was declined.

"I thought it was strange," she recalls. "I knew I had money in my account but it wouldn't let me withdraw anything. I was annoyed but decided I would deal with it when the bank opened on Monday."

But before she had a chance to do that, Lindsay's bank phoned her because payments totalling £1600 had been made in Italy during the previous week over five days.

"It came as a real shock," says Lindsay, who lives in Currie. "I've no idea how it was done. I haven't got many details from the bank as it happened so recently but I've always been careful about shielding my PIN number and that sort of thing."

Lindsay is one of thousands of people in Edinburgh who have been the victim of credit or debit card fraud. According to APACS, the UK trade association for banks and credit card companies, credit and debit card fraud losses on UK-issued cards totalled £3.1 million in Edinburgh in 2006. And though that figure is down on 2005, thanks to the introduction of chip and pin, the statistics do not tell the whole story.

"The figures aren't representative because though chip and pin has worked in reducing face-to-face fraud, 'card-not-present' fraud - which includes fraud over the internet and phone - has increased as a result," says Detective Constable Mike Harris of Lothian and Borders Police.

"Fraudsters are, by their very nature, clever people and will always find a new method. Because of chip and pin technology, organised gangs won't tend to steal cards now but instead note down numbers and the details can be used on the internet or abroad."

DC Harris, who works at the police's Specialist Fraud Unit, adds: "The majority of spending on UK cards that have had details copied is overseas.

"There are organised gangs working here who have several ways of obtaining details and sending the information back to places like Eastern Europe, Australia and the Far East.

"Many countries overseas do not use the chip and pin technology so the details can be transferred on to what we call white plastic - just a blank card. It has become a worldwide problem and as a result is more difficult to trace."

And for victims of card fraud, after the initial shock comes the lengthy process involved in attempting to reclaim the stolen money. Although victims of credit card fraud in the UK will be recompensed by their bank, it can be a lengthy process.

"The hassle and inconvenience is so frustrating," says Lindsay. "My baby Isla is just six weeks old and I need to go out and buy things like nappies but I didn't get a replacement card for over a week.

"Apparently it will take two to four weeks for just the claim form to be processed. Luckily, we have just enough money to manage but things are tight because I'm not at work and my husband is on paternity leave at the moment.

"From now on I will be much more careful. I am shredding absolutely everything and now go into my bank in person, rather than doing phone or internet banking. It isn't as convenient and perhaps I'll change again in the future but for just now I want to be able to keep track of everything."

DC Harris recommends several simple steps that can help prevent card fraud, including shredding any card receipts or cash machine statements and being alert when using ATMs.

"People use skimming devices to copy the magnetic strip and then make counterfeit cards," he says. "These can be fitted at cash machines in seconds and if anyone sees anything suspicious, don't hesitate to report it to the police.

"However, the highest number of frauds are now in the cardholder-not-present category. Be very wary of e-mails or cold callers asking you to pass on your bank details. These hoax e-mails, often purporting to be from your bank, are known as phishing and ask for details and your password."

Another tip is to be aware of where your card is at all times. Although this sounds like obvious advice, many people are caught out.

Nicola Burns from Comely Bank received a phone call from her bank asking if she had made a payment of £800 to a website selling electrical goods.

It was a website she had never heard of.

The 30-year-old accounts manager explains: "It turned out that over the weekend somebody had used my debit card details and already spent around £600 before the bank phoned, on websites including Monsoon and As Seen On Screen. Coach and train tickets had also been booked.

"It was from my current account and, because I had just been paid, and it was over a weekend, I hadn't noticed. I felt really shocked and disturbed and had no idea how it could have happened.

"You also start to question yourself and, as I'd been booking a holiday over the internet, I'm not sure I would have noticed some of the travel payments straight away."

It is believed that her card details - including the security code on the back - were copied in a bar or restaurant.

DC Harris warns that when you are paying the bill, your card should always be in your sight. "Bars and restaurants should all be chip and pin compliant now," he says, "so there is no reason for the card to be taken away from you.

"Every bar and restaurant will have a terminal for the chip and pin technology that can be brought to your table, or used where you can see it. I have even heard of people being asked for their pin and the waiter tapping it in - which you should never comply with."

Like Lindsay, Nicola faced weeks of uncertainty following the fraud.

"I was worried the payments wouldn't be cancelled and that I'd be really skint," she recalls. "Rent was due out of my account and I was worried I would be charged for going overdrawn. My bank were really good about it, and I'm pleased they contacted me so quickly.

"But it took around six weeks for me to get the money back. They haven't caught whoever did it but think it must have been in a bar or restaurant because the security code on the back had been used as well as the card details. After this experience I am much more careful.

"I was a Switch queen, and used it for everything, even amounts of £3 or so. Now I carry cash around instead and never let my card be taken out of my sight in restaurants."