Elderly and vulnerable bank customers are increasingly being targeted by a new scam involving debit and credit cards, according to a shocking report by the UK Cards Association.
The premeditated fraud involves a person being called by a criminal posing as someone from their bank, or even the police.
The caller tells the victim that their credit or debit card needs collecting and replacing following fraud on their account.
They reassure the victim that the call is genuine by getting them to hang up and call the bank’s number for confirmation.
Following this, the criminal caller stays on the line, tricking the victim into believing they are on a new call and that the person at the end of the line is their bank.
The criminal then asks the person to divulge their PIN or asks them to key their PIN into their telephone keypad, before sending a courier to their home to collect the card. The victim is told that the card is going to the bank, but it ends up in the hands of the fraudster along with the PIN obtained during the call.
It’s very simple, but also very effective. Figures released by Financial Fraud Action UK and the UK Cards Association show that this particular con has already resulted in more than £7.5 million worth of fraud on credit and debit cards in the first eight months of this year. Over that time, more than 1,600 bank customers have fallen victim, with average losses per case amounting to almost £4,200.
Police are warning of a spike in reported cases, with intelligence showing the estimated amount stolen through this method last year was more than ten times the amount for the whole of 2011.
The deception, undertaken by criminal gangs, tends to target elderly bank customers, with fraud intelligence showing that the average age of victims is 69. Strathclyde is one of the chief hot spots for this crime, alongside London and Surrey.
If you’ve got elderly neighbours, friends or relatives, take five minutes to help prevent them being among the next victims.
Spreading the word will not only cut the number of successful scams, but more importantly will also reduce the unnecessary stress and misery that this type of deception causes. If customers are victims of fraud, they will not suffer any financial loss. However by following these three steps, they can prevent becoming a victim in the first place
• Your bank or the police will NEVER ring you to tell you they are coming to your home to pick up your card. Never hand it over to anyone who comes to collect it.
• Your bank will NEVER ask you to authorise anything by entering your PIN into the telephone. NEVER share your PIN with anyone – the only times you should use your PIN are at a cash machine or when you use a shop’s Chip & PIN machine.
• Always speak to your bank securely. Before calling your bank, make sure that you can hear the dial tone. Ensure that you only ever call your bank on an advertised number.
• Andrew Hagger is a personal finance expert at Moneycomms.co.uk