Press Release

COULD 2007 BE THE YEAR OF THE CLONES?

Equifax warns of the risks of credit card cloning

London 19th November 2007 – The introduction of Chip and PIN in 2006 has certainly helped to combat credit card fraud. However, recent APACS figures* suggest that card fraud is still a major issue for consumers and the retail financial services sector alike. Leading instant online credit information provider, Equifax, is warning that the methods by which this crime is perpetrated are becoming more sophisticated, with a number of cases highlighted to the company in the last few months with cloning being particularly prevalent.

Credit cloning is a retailer’s nightmare with, in particular, a number of incidences involving petrol stations. Equifax is warning consumers to look closely at their credit card and bank statements for signs of unusual activity and it cites the case of Sarah McBride, a 19 year old administration assistant from Teddington, who found out about credit card cloning the hard way.

Sarah received a call from her bank mid September, asking if she had been to Italy. She had recently been on holiday there, but she hadn’t taken her credit card so was puzzled by a transaction from Italy that the bank was calling about. It transpired that the bank believed her card had been cloned at a local petrol station, which was a problem they were seeing on a regular basis. The bank cancelled the card and advised her to only use cash at garages.

Sarah is usually quite wary with her money and takes care when entering her PIN. She doesn’t use her credit cards to pay for many things as she prefers to monitor her spending by withdrawing cash. However, despite this care and attention, she became victim to the cloners and it has made her think more about card security and ID fraud. She has applied for a copy of her Equifax Credit Report and is considering shredding her personal details from now on. Sarah also recently moved house, so she has set up post redirect to ensure that none of her post goes to the old address.

“Sarah is very careful with her cards and money, yet she still came a cropper at the hands of credit card fraudsters”, confirmed Neil Munroe, External Affairs Director, Equifax. “As Sarah experienced, fraudsters are close to home, with many cloning cards in the UK and then living it up abroad using the victim’s card. Fortunately Sarah’s bank was quick off the mark and stopped any serious damage being done. And Sarah isn’t the only one to have been hit by the cloners. BBC TV Top Gear presenter, Jeremy Clarkson, recently reported that his card had been cloned to the tune of over £35,000!

“It is, however, encouraging to see that APACS has been running a campaign with the UK Petroleum Industry Association to remind customers to keep their cards and PINs safe and secure at all times. This included a week-long campaign at the beginning of November where customers paying by card at many petrol stations throughout the UK were handed a small advice card reminding them to remain vigilant to the risks of fraud.

“ID and credit card fraud is a very real threat for consumers, making it essential that they take sensible precautions to protect themselves. Armed with the right knowledge, consumers can help minimise the risk of fraud and take fast action if they do become victims.”

*APACS Card Fraud Losses – January – June 2007
Released 3rd October 2007

Plastic card fraud up 26% in first 6 months of 2007
Card fraud abroad doubles
UK domestic card fraud down 4%

EQUIFAX’S TOP TIPS TO AVOID FRAUD

Check bank statements and credit card statements against receipts carefully
Shred all statements, bills and direct mail which contain personal information
Redirect mail if you move house
Keep your PIN secure and never give it to anyone else
Get a copy of your credit file to keep track of how your personal data is being used
If you think you have been a victim of identity theft subscribe to the CIFAS Protective Registration service