MSE News: Bogus mobile top-ups could spell greater fraud danger

allule

I found this very useful as a likely explanation of what is happening.

I wonder how much money is going through without being spotted?

Difficult to see how to avoid it, unless banks can allow us to bar payments to O2.

I suppose the only defence is constant checking of bank statements - luckily this can now be done easily, and a phone call to Smile immediately sorted this out for me, but with the inconvenience of having to have my card replaced.

rb10 wrote: »

I have read through a few pages of this thread, and have found it very interesting. So many people are so quick to accuse companies, banks, or websites, for allowing their card details to be passed to fraudsters.

This is, in general, not the way it works. Large sites (e.g. Paypal) do their own payment processing, and smaller sites subcontract this out to someone like Worldpay. All these organisations have to be so very careful with our card details, as the amount of fines and worldwide reputational damage would be crippling to their business. I do not believe that these companies have anything to do with these fraud cases.

All these cases of PAYG mobile top-up fraud happen online. That indicates that a 'clone' of the card doesn't exist. So the fraud probably doesn't originate from an ATM, because a device on the ATM, along with 'shoulder-surfing', would enable the fraudster to create a clone, and this, along with your PIN, could be used for ATM withdrawals.

Instead, all that they have is your 16 digit card number, your three digit security code, and your expiry date. With a powerful enough computer, they can just create millions of different possibilities. Each of these is used for a small 'authorisation' transaction, typically for about 1p. (This normally doesn't show up on your statement, but you may notice your available balance decrease by this amount for a few days where one of these has occured.) After they get a successful one, they'll put through a 'real' transaction, for a low value. This is where you see the mobile top-up or cinema ticket.

There is nothing that we can do to stop this at the present time (without advances in technology), apart from being vigilant ourselves (so that we notice the transactions quickly and can stop our cards) and hoping that the banks do the same (e.g. Halifax phoned me to warn me as soon as my card number was used fraudulently; I think Egg do the same). And don't try to shift the blame onto random websites/ATMs that you've used recently, chances are, they don't deserve it. (Although there will always be the odd exception, I appreciate that!).

iansoady

Just happened to me - £30 to O2 prepay. Smile were great - cancelled the card immediately and have just refunded the £30 the day after I called.

I have never used the card (debit) for anything other than drawing cash and shred all paper with account numbers etc so am puzzled as to how they got hold of the info.

Update: This site describes the method by which fraudsters can generate plausible and valid card numbers without ever seeing your card itself. Fascinating........

areader

I'm slightly surprised (but not totally shocked...) that the phone and credit card companies still allow this to go on more than 2 years after it was brought to many peoples attention! I assume O2 is only allowed to continue running such substandard card systems since as a proportion of their total payments these frauds are relatively small.

My Barclaycard was charged a total of £20 in 2 transactions of £10 each at the end of October to O2 Prepay, Slough. I phoned up the Barclaycard lost and stolen number (which appears to redirect to their standard customer service number - no hurry there) and after I told them that my card has been used fraudulently and they issued some disputed transaction forms I was somewhat shocked that I then had to take the initiative to tell them that I wanted my current card cancelled and another one issued. I also to had to ask them to run through a list of recent transactions to make sure there were no other fraudulent charges pending!!!!

Gingernutty

:mad: After I was scammed by someone using my HSBC card details in May 2009 (page 7 of this thread) - the same thing has happened again.

I am spitting.

Having hacked through the snow to find an HSBC cash machine which worked, I was appalled to discover that the same fraud has occurred again.

After the last time, I cancelled the card and had to fill in forms. I've since lost THAT card to a defective HSBC machine.

I have been nothing but paranois about card security and I am really really annoyed about the so called 24/7 service that HSBC and O2 are supposed to have not working after about 6pm on a Sunday.

Six days from Christmas and two days from pay day, I have had to cancel my card (HSBC are also having problems at their foreign call centre so I spent ages on hold) AND with the bad weather as well - I might as well give up trying to see my wages before the New Year. :mad:

:mad: I CAN'T BELIEVE IT'S HAPPENED AGAIN! :mad:

BRASTADS!

pleasemakemedebtfree

Just happened to me - 2 payments of £15 to O2 prepay. Have had to cancel my card just before Christmas! No idea how they got hold of my details as I'm really careful about shredding all my paperwork and covering my pin. S**ds! Why do they think they have the right to my money - really upset about this but glad it was only £30.

mikomi_2

Me too, 2 payments of £15.00 to O2 Prepay Slough.

Card cancelled two days before Christmas. Halifax were helpful but did state that this is a very common and widespread fraud. Promise of money back after signing and returning fraud declaration.

A quick search on Google shows the extent of this fraud which O2 seem to be actively encouraging by their lax security.

Incidentally, I just recently registered this card with Paypal. This is the third time this has happened to me over the last three years and I always had my suspicions about Paypal, but recently wanted to buy some things on Ebay and registered this card on an old Paypal account, then a few weeks later, this happens. Coincidence?

damsidebear

Checked my CC online statement an hour ago and noticed a o2 £15 transaction on the 27th December! i don't have o2, CC company have put a block on my account and i have to contact them back in the morning.

:mad:

lucym

I found two 'o2 prepay ' transactions on my account on Friday - I could see that my balance was a lot more than £30 out and found out yesterday that a £300 wine order was also made.

The bank said that we will get the money back but it has left us unable to pay some bills, plus my husband has to wait for a new debit card.

snowberry

Hi, like almost everyone on this thread, I'm only here because I have just found out that nasty scammers have taken it upon themselves to lighten my bank account.
I was straight onto Halifax this morning who have been brilliant. A shiny new bank card should be with me in 10 days & my account refunded.
O2 weren't that polite until I got through to the fraud dept. They wanted my long card no. so that they could trace it to the phone being used, but I'd cut it up by then, & feel a little uncomfortable about giving out bank details of any kind now.:rotfl:

Should I also get a crime no. from the police? Though I appreciate that they won't be dealing with it, the bank/O2 will.

Much love, Emma

Le_Mouse

*unlurks*

It's happened to me too. £15 by O2 Prepay Slough on Wednesday. HSBC were very good because they called me to say they'd noticed the transaction straight after it happened. And they've refunded me today which I'm very pleased about. My new card should appear in a few days.

The only thing that has been a problem for me has been that HSBC's fraud prevention team are located somewhere abroad so the phone line is *appalling* - I feel very sorry for the chap I spoke to today because I was getting increasingly frustrated because I couldn't hear/understand him and had to keep asking him to repeat himself. At the end of the call, I *think* he was telling me that he was going to send forms out for me to fill in to declare it as fraud, but to be honest, I couldn't hear the poor $od. And this was on a phone in the branch!

This whole thing has shocked me a bit - I'm super careful with my card and check my statement online every day. While googling for all this I found the same article as iansoady. I've passed this information on to people at my work so they know what to look for on their statements too. I feel lucky that so little was taken from my account and that it's been resolved so quickly. I feel for all the other posters who've been royally stitched up by these w@nkers.

O2 has to get its @rse in gear and sort out their security!

*relurks*