Official figures from APACS, the UK payments association, reveal the total losses as a result of card fraud fell by 13% in 2005 when compared to 2004. In 2005 the figure was £439.4m in 2005 compared to £504.8m in 2004. It is suggested that the fall is a consequence of the introduction of chip and PIN technology which has already resulted in a reduction of nearly £60m in combined counterfeit and lost and stolen card fraud losses – a fall of 24% - and in mail non-receipt fraud, which fell by 45%.

Card Watch, a UK banking industry initiative which aims to raise awareness of card fraud prevention have suggested a number of steps that you can follow to ensure that you do not become a victim of card fraud.

General Advice

• Don’t let your cards or your card details out of your sight when making a transaction.
  
• Check receipts against statements carefully. If you find an unfamiliar transaction, contact your card company immediately.
  
• Never write down your PIN and never disclose it to anyone, even if they claim to be from your bank or the police.
  
• When you dispose of them tear up, or preferably shred, any documents or receipts that contain information relating to your financial affairs.
  
• Report lost or stolen cards or any suspected fraudulent use of your card to your card company immediately. The 24-hour emergency number is on your last statement or call directory enquiries.
  

When making phone transactions using your credit, debit or charge card:

• Don't give your card details over the phone to cold callers. Only make telephone transactions when you have instigated the call and are familiar with the company.
  
• Have the card in front of you.You will be asked for information including the account number and expiry date.Additionally you will increasingly be asked for the three or four-digit card security code on the signature strip, issue number, your name as it appears on your card and the address as it appears on your card statement. Never give your PIN to anyone.
  
• Always ask the retailer to confirm the full price to be charged to your card, including any booking fees, delivery charges etc. Keep a note of these details.
  
• If the retailer sends you written confirmation of the order, check the bill to ensure that it is correct. Keep any such receipts and check them off against your next statement.
  

When shopping online:

• Sign up to Verified by Visa and MasterCard SecureCode on a retailer’s or your card company’s website. By signing up you will be further safeguarding your card details from online misuse.
  
• Only shop at secure websites – ensure that the security icon (the locked padlock or unbroken key symbol) is showing in the bottom of your browser window before sending your card details. The beginning of the retailer's Internet address will also change from 'http' to 'https' when a purchase is made using a secure connection. Use sites you can trust, for example sites you know or that have been recommended to you.
  
• Print out your order and keep copies of the retailer's terms and conditions, returns policy, delivery conditions, postal address (not a post office box) and phone number (not a mobile number). There may be additional charges such as local taxes and postage, particularly if you are purchasing from abroad. When buying from overseas remember that it may be difficult to seek redress if problems arise, but having all the aforementioned information will help your card issuer take up your case if you subsequently have any difficulties.
  
• Ensure you are fully aware of any payment commitments you are entering into, including whether you are instructing a single payment or a series of payments.
  
• If you regularly make transactions over the Internet consider using a separate credit card specifically for these transactions.
  

Advice when choosing a PIN:

• To remember a new PIN you could use an anniversary or a friend’s birthday. Use a combination of day and month or month and year – but don’t use numbers that are easily associated with you, like your own date of birth.
  
• Ideally choose a random combination of numbers – this is the hardest for a criminal to guess. If this is difficult for you to remember then perhaps use the year that you left school or the number of letters in a four-word phrase that you can easily remember (e.g. ‘keep this a secret’ would equate to 4416).
  
• Rather than remembering a PIN digit-by-digit, learn the pattern that you need to trace on the keypad with your fingers. All keypads are configured in the same way, so by remembering a square formation on the outside of the keypad that begins with ‘1’ and moves in a clockwise direction, your number would be 1397.
  

Keeping your PIN a secret:

• Don’t allow anyone else to use your card, PIN or other security information. Never write down or record your PIN or other security information.
  
• When entering your PIN use your spare hand or your body to shield the number from any prying eyes or hidden cameras. If you think someone has seen your PIN you can change it at a cash machine.
  
• Memorise your PIN and other security information and destroy the notification as soon as you receive it. If the PIN you are given is difficult to remember, change it to something more memorable at a cash machine as soon as possible.
  
• Always take reasonable steps to keep your card safe and your PIN secret at all times.Your bank or the police will never phone you and ask you to disclose your PIN.
  

Precautions when using a cash machine:

• Put your personal safety first. Be aware of others around you. If someone is behaving suspiciously or makes you feel uncomfortable choose a different machine. If you spot anything unusual about the cash machine, or there are signs of tampering, do not use the machine and report it to the bank immediately.
  
• Give other users space to enter their PIN in private.We recommend standing about two metres away from the user in front of you until they have completed their transaction. Some cash machines may have a safety zone marking out this area on the ground around the machine.
  
• Be alert. If someone is crowding or watching you, cancel the transaction and go to another machine. Do not accept help from seemingly well-meaning strangers and never allow yourself to be distracted.
  
• Stand close to the cash machine. Always shield the keypad with your spare hand and your body to avoid anyone seeing you enter your PIN.
  
• Once you have completed a transaction put your money and card away before leaving the cash machine. If the cash machine does not return your card, report its loss immediately to your bank. Tear up or preferably shred your cash machine receipt, mini-statement or balance enquiry when you dispose of them.
  

Article added: 15/10/06