Telephone bank card scam on rise

Credit cardsA telephone scam in which victims are duped into allowing their bank cards to be sent by courier directly to conmen has seen a sharp rise.

Some £750,000 was lost to this crime in the first four months of this year, the same amount that was stolen over the whole of last year, equating to a threefold increase, the Payments Council's education campaign Pay Your Way said.
The scam involves the victim being called on a landline phone by someone claiming to be from their bank and told that their debit or credit card needs to be collected for replacement following a fraud on their account.
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The caller often suggests the person should hang up and call the bank back if they want to ensure the call is genuine - but the conman stays on the line, tricking the person into believing they are calling their bank.

The conman will then ask the victim to key in their pin number, before sending a courier to collect the card. The person believes the card is being returned to the bank but it is being delivered to the fraudster to use with the pin obtained over the phone.

Detective Chief Inspector Paul Barnard, head of the dedicated cheque and plastic crime unit, the specialist police unit that tackles UK card and cheque fraud, said: "If you think you have become a victim of fraud on your account, you should contact your bank in the first instance, although if there is a crime in progress you should call 999 straightaway."

Pay Your Way is working with the UK Cards Association and Financial Fraud Action UK to raise awareness of how to avoid becoming a victim of this crime.

It said banks will never call customers to say they are going to collect their cards from their home and consumers should not hand their cards over.

Banks do not ask customers to authorise anything by entering their pin into a telephone and pin numbers should only be entered at cash machines or chip and pin machines.

Campaigners also said that consumers should make sure they can hear a dial tone before calling their bank and they should only use the bank's advertised number.

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Telephone bank card scam on rise

Land banking involves plots of land offered for sale, often online, with the promise of sizable returns when planning permission is approved for housing or other development. Yet often the land is located in areas protected from development by planning law.

The companies involved soon disappear with investors' money and as the firms are not protected by the Financial Services Authority, their funds are not covered by the Financial Services Compensation Scheme

It is reasonable to assume that if you take out a mobile phone contract at £30 a month for 24 months that's exactly what you'll pay unless you exceed the tariff. Yet mobile phone providers have come under fire for a snag buried in the small print – a clause to allow mid-contract price rises.

Prices are rising by a median of 81p a month and 70% of consumers are completely unaware off this sneaky move, according to Tesco Mobile, so be sure to check any new contracts before you sign the dotted line.

Fraudsters recruit unknowing accomplices through email under the guise of offering employment, seeking a personal favour, or through internet shopping sites. The recruits are persuaded into receiving what are essentially fraudulent payments and then passing funds on.

The 'mules' are frequently offered a small financial incentive to encourage involvement and face difficulties in proving their innocence when the fraud is discovered.

The scams claim to offer people the chance to profit from carbon credits. Under regulations that permit businesses to emit a tonne of CO2 – the companies claim to offer investment in green projects like a forestry scheme or a solar panel project, which generates carbon credits that are then sold on to heavy industry.

A flashy brochure or website tells of a reliable 'government-backed' scheme which provides reliable returns for investors. Such a scheme doesn't exist however – a reality investors only discovered when they have parted with their cash and the company is untraceable. As with land banking, fraudulent companies are not covered by the FSA so victims have no course for recompense

Receiving an email from the taxman saying you are owed a payment may seem like a nice surprise, but it is actually from fraudsters trying to relieve you of your cash instead.

The emails provide a "click-through link" to a cloned replica of the HMRC website. The recipient is then asked to provide their credit or debit card details - all the information the criminals need to clear your account, and sell on your personal details.

Insurer Direct Line reported a hike in the number of 'crash for cash' scams last year – where fraudsters fake accidents by making unnecessary emergency stops at busy roundabouts or slip roads, forcing motorists to crash into them.

They then make bogus claims to the innocent motorist's insurer, often including fictitious injuries and passengers.

Learner drivers have been taken for ride by being unknowingly taught by trainee instructors. An investigation by the AA found up to 27,000 extra driving tests have been failed in the last year because one in 10 learner drivers are unwittingly taught by an instructor they do not know is learning on the job.

July saw the arrest of a Leicester postman who stole £46,686 worth of mail over two-and-a-half years. Yogeshbhai Patel, 38, was jailed for two years for stealing mail including 2,000 DVDs and 2,250 games along with CDs and other electrical equipment. He intercepting the valuable packages and spent the money on living a luxury lifestyle including helicopter rides and a trip to Las Vegas.

The Trading Standards Institute reported over 200 cases where elderly homeowners have been targeted by telephone cold callers, purporting to be from their energy supplier and offering energy saving devices which could cut their bills by 40%.

The TSI tested the devices in homes where owners had fallen for the scam, only to find they both failed to satisfy electrical safety standards or deliver any tangible energy savings.

Thermal cameras that track ATM pin numbers are the latest weapon in their arsenal and US scientists have warned it is the next threat for this form of crime. Researchers at the University of California at San Diego found that up to 45 seconds after a person types their pin code into an ATM machine or door entry pad the numbers and even the sequence are still readable by thermal cameras.

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