What is the best Card Security Service to protect me from fraud

Rosco1112

Hi everyone, Online fraud is on the increase and I have a lot of credit cards often making payment on the internet so by now a lot of companies have me card details on file and only some credit cards protect you from fraudulent transactions. I was just wondering who the cheapest and best company is that provide cover, I know that it will cost me around £15 a year but not sure who to go with, would appreciate any feedback thanks

jonesMUFCforever

I'm not sure what you think you are buying for £15 but my online security costs me nothing - Yes zilch not a cent!
I run an up to date firewall (Zone Alarm) and Anti virus (AVG) both free and available for download.
If you take sensible precautions like not falling for phising e-mails or clicking hyper links etc then you should be fine.
If someone does manage to get hold of your card details and fraudelent transactions do take place you are not liable for them (Technically you are for first £50 but I have never seen a card company apply it).
I use the Internet weekly for shopping and bills payments and have not had any problems.

Astaroth

All my credit cards have fraud protection as standard at no charge with no minium amount.

Rafter

You do not need extra protection.

Under the consumer credit act you are protected from fraudulent transactions on credit cards whether online or in the real world.

It is worth downloading the latest beta version of internet explorer which contains additional phishing protection.

It is worth having a dedicated card for online transactions too.

Always check for the padlock symbol on sites where you are making payment - if it isn't there call them with your credit card details instead.

Never disclose your pin number.

Register for verified by visa or the equivalent mastercard scheme which gives you some additional protection on some sites.

Check your credit card statements regularly.

If you bank with Barclays they are giving away free anti-virus software for their customers now.

Certainly not worth spending £15 a year plus for protection you do not need.

R.

James

The question to ask is, if I were the victim of card fraud what is the best way to minimise liability risk to me personally.

As it stands:

There are basically two types of card fraud – Account Take Over & Application

Account Takeover:

The use of your stolen card with a PIN or a Signature. (Stolen)

Your card is cloned and the cloned card used with a PIN or a Signature. (Cloned)

Your card details are obtained and used to purchase goods on the Internet, by Mail Order, Telephone or Fax. (Card Not Present Fraud – CNP).



CNP Fraud: The Banking Code: On Line Banking

If someone uses your card details without your permission and your card has not been lost or stolen, you will not have to pay anything.

12.12 If someone else uses your card details without your permission for a transaction where the cardholder does not need to be present, you will not have to pay anything

This is what the code says therefore in theory you have no liability BUT the Code also says:

12.9 On Line Banking - Safe and convenient as long as You take a number of precautions.
Keep your PC secure. Use up-to-date anti-virus and spyware software and a personal firewall.

I recall reading, but am not absolutely sure that one victim was hit by 12.9, their card issuer used it as a get out clause to shift the cost of the fraud on to the victim.

Stolen & Cloned

12.12 If someone uses your card before it’s reported lost or stolen, or that someone else knows your PIN, the most you will have to pay is £50.

Liability for Losses:

12.11

If you act fraudulently, you will be responsible for all losses on your account.
If you act without reasonable care, and this causes losses, you may be responsible for them. (This may apply if you don’t follow section 12.5).

12.5 Make sure you follow the advice given below:

Choose your PIN carefully.
Destroy Your Pin notice as soon as you receive it.
Never write down or record your PIN.
Take reasonable steps to keep your PIN secret at all times.
Never give security information to anyone unless you know who they are and why they need them.

The theory’s great, advice sound, but in reality:

Recent evidence IMHO proves that that there is a liability shift where a PIN is used to commit fraud. Cloned cards have been used with PINs at ATMs, genuine cards stolen and used with PINs, ( even after the theft had been reported). The cardholders are being held liable, although they all maintain they were careful with their PIN. It all hinges on ‘reasonable care’ where PINs are used.

So to sum up, CNP fraud chances of being held liable for fraud costs, minimal.
Lost/Stolen/Cloned card (Depends if you sign or PIN) – to remove liability costs and prevent yourself being treated as a suspect Bin your PIN and keep on signing. Why be held responsible for something (a PIN) that could cost you in all manner of ways and the industry can’t guarantee THEY can keep your PIN secret.

Application Fraud

This is where someone uses your personal information, stolen or counterfeit documents to open bank accounts, get credit and cards in your name. Identity Theft:

Join the Protective Register - £11.75/per year. It’s a password driven system

http://www.cifas.org.uk/protective_registration.asp

Or Take Identity Fraud in Hand:

Neil Munroe, a director at Equifax, said, “It is certainly one answer and makes a lot of sense.”

http://news.bbc.co.uk/1/hi/programmes/moneybox/3574779.stm

http://www.24dash.com/content/news/viewNews.php?navID=34&newsID=3685

Totally minimise the risk. Take action yourself and hold card issuers responsible if your Terms & Conditions are not met:

The choices are yours.