Card cloned and used in Australia

dealsearcher

I understand there is a very significant number of credit and debit cards being cloned in Britain and then being used in Australia. This happened to me recently. I am told by my bank that the problem is particularly bad with Australia because they still use paper records. I was told that the problem is 'massive'.

Any system is only as good as its weakest link. In this case chip and pin works reasonably well in Britain making Britain the harder option to use stolen data. So they steal from Britain and then use the data in the easier locations, one of which is Australia.

Actually if you think about it there is not a lot of incentive for the Australian banking system to get their act together because money is being stolen from Britain and feeding their economy! A bit of a worry - as they would say.

autismmum

lol , sorry but we all know the joke about australian ancesters dont we...

dealsearcher

As this problem is 'massive' you wonder why you are not supposed to report it to the police, just to your bank. Maybe its because the police don't have the manpower and have more important things to do - like all that paperwork.

I believe the UK banks should be telling the Australian banking system to get their act together and the police should be telling the UK banks to do this.

Maybe the UK banking system should be getting the fraudulently taken money back from the Australian banking system or the UK banks will curtail their business with them. After all the UK banks are having to cough up the money to reimburse their customers.

James

dealsearcher wrote: »

After all the UK banks are having to cough up the money to reimburse their customers.

Not always:

BBC Watchdog Video (Click here).

Why won't bank believe me? (Lots more examples in these Forum's, and the Press).

dealsearcher

That's another issue James which is already covered in another thread. If the crime is committed through Australian banks then they should reimburse the UK bank. That way the UK bank can reimburse the customer in all cases without losing out.

The UK banks have a responsibilty to their customers. They supply cards which can be used around the world. They and the banking system have to take that into account.

M_Thomson

dealsearcher wrote: »

That's another issue James which is already covered in another thread. If the crime is committed through Australian banks then they should reimburse the UK bank. That way the UK bank can reimburse the customer in all cases without losing out.

The UK banks have a responsibilty to their customers. They supply cards which can be used around the world. They and the banking system have to take that into account.

If a crime is committed in another country using a UK bank card it will be the UK bank that takes the hit for the fraud, not the overseas one. They will have insurance that covers them for this.

M_Thomson

dealsearcher wrote: »

I understand there is a very significant number of credit and debit cards being cloned in Britain and then being used in Australia. This happened to me recently. I am told by my bank that the problem is particularly bad with Australia because they still use paper records. I was told that the problem is 'massive'.

When you say they use paper records, what do you mean? You make them sound like they are still in the 1800's! Also, the reason that card fraud using UK cards maybe quite high in both Australia and America is because neither use Chip and Pin, so a fraudster might clone a card here, then use it over there.

dealsearcher

Why the confrontational tone M Thomson? I am just stating what my bank told me. And you are just reiterating what I said - Australia does not use chip and pin. In the banks words they use 'paper records' instead, like before chip and pin. :rolleyes:

I know the UK bank is hit by the fraud - that is why I said the Australian banks should reimburse the UK banks! (Where the fraud occurs there of course). Yes they are covered by insurance but who pays the insurance premiums? Why the UK banks of course and therefore us customers because the banks are running a business and will pass on the cost of the premiums. :rolleyes:

viking30

Thats correct, Australia does not use chip and pin but a signature is required at all times or the retailer will not be paid by the bank. This of course does not help if the signature on the card is fake too. While the Australian system is called "paper" that only refers to the signature part. All ( well almost all ) retailers use EFPOS systems and cards are checked electronically before the signature is requested by the retailer. Of course if the card number is found to be valid and the retailer does get a signature of the EFPOS slip then they will be covered for payment by the bank. Any transactions carried out over the internet for example where no signature is obtained will mean the retailer will not be paid by the bank so they lose out. I know from experience that selling online is a real risk in Australia. I understand that there are plans to change to chip and pin, but Australia is always about 10 years behind the UK.

dealsearcher

Thanks for that Viking. In my case the money was taken from an ATM. They must have got my pin as well. It's been a problem with some petrol garages and I think I must have got caught by one.

I reported it to the police as well (although we are told that it's up to the banks to do that). I felt I had some information about a garage where the fraud may have been carried out. They were polite and everything but I am not sure whether they took it seriously or not.

I have just been told that it is going to take around 6 weeks for the Abbey to sort it out! My gripe with the Abbey is that they allowed the card to be used in Australia when I used it in the UK at the same time! Surely the system (EFPOS?) would check for that and stop transactions occuring which are clearly impossible for one to be genuine?

viking30

Sorry..Eftpos = Electronic Fund Transfer at Point Of Sale
I'm just guessing as I'm not sure how works but if its a fake card that's been used the pin number is probably just recorded onto the magnetic strip and as long as pin used in an ATM matches the pin on the strip the atm will dish out the cash once its confirmed the account attached to the card has funds available? They may not have had YOUR pin just a fake one too?