support
Send this page to a colleagueData quality news
New type of credit card fraud hits banks
- Sep 2 2008, 10:44 AM
Fraudsters are continually searching for new ways of defrauding both individuals and institutions by committing identity theft.
Recently, criminals have targeted credit card issuers by 'loading' cloned credit cards with cheque payments they know will bounce before quickly spending the credit and making off with their takings, according to ThisIsMoney.co.uk.
A Lloyds TSB spokeswoman explained: "An innocent person's credit card is cloned and the fraudster is unaware how much is owed on that card.
"So they go into a bank and use an old or fraudulently obtained cheque to put a substantial sum --perhaps £6,000 - on the card," she told the website.
"This can clear the balance - or reduce it or put it in credit - and the card can then be used."
Lloyds TSB has reportedly begun verifying the identity of every person paying a credit card bill that does not belong to them and this seems to be the best way of dealing with the problem.
Banks, retailers and individuals should always be vigilant when receiving payments by cheque or card, making sure that the person carrying out the transaction is actually the account owner by verifying their identity.
Related articles...
-
Identity fraud can be beaten by ID cards, says government
- Jul 3 2009, 12:28 PM With identity fraud on the rise, the home secretary has spoken out about why he feels everyone should get behind the ID card scheme. -
Survey indicates Londoners most at risk from identity fraud
- Jul 3 2009, 12:27 PM A survey by Cifas - the UK's fraud prevention service, has found that London is a hotspot for identity fraud. -
Identity fraud expert explains the criminals' tricks
- Jul 2 2009, 11:54 AM Identity fraud comes mostly in two forms - account takeover fraud and new account fraud, explains an identity fraud expert. -
Government pushes forward with ID cards to combat identity verification fraud
- Jul 1 2009, 12:22 PM The government has announced that it is to extend the ID card scheme, designed to combat identity fraud and other serious crime, to a greater number of areas in the UK. -
Fewer under-18s in Scotland have identity authentication details on DNA database
- Jun 29 2009, 14:01 PM The number of Scottish youngsters who have their identity verification information on the DNA database is less than the number of Welsh and England under-18s.
For more news, you can also click on the category of your choice in the right hand menu.
