The risk of credit card and bank account fraud has reached epidemic proportions, as one in two people fail to take basic security precautions when using their plastic and banking online, according to a Which? magazine survey.
Around 50 per cent of those questioned admitted to using the same PIN for more than one card, failing to check that a website is secure before shopping online, or using their mother’s maiden name as a password. One in seven respondents admitted to writing down their PINs and passwords.
But in other respects, there were signs that most people are now aware of other common fraud risks, with the majority shielding their PIN from ‘shoulder surfers’ at cash points, checking statements for rogue activity and shredding statements and other paperwork carrying personal data.
If you fall victim to bank fraud, the maximum you are liable for is £50, providing you have not behaved negligently or recklessly, such as by divulging your PIN to a third party. If this is the case, you might find yourself liable for the bulk of the loss.
On the store card front, Which? magazine has found that some store cards are still charging penalty fees of more than £12, despite an Office of Fair Trade ruling in 2006 that if a cardholder makes a late payment or exceeds their credit limit, the penalty fee should not exceed £12.
The guilty parties are Clydesdale Financial Services (now known as Barclays Partner Finance) which issues cards for Jessops and Hobbs and was found to be charging penalty fees of £22.50.
Other culprits include Monsoon (£15) and the Duet store card (£20), operated by Creation Financial Services and which can be used at Carphone Warehouse and JJB Sports.
To reclaim unfair default penalties like these, there are template letters at www.which.co.uk/bank charges.
If you want to report your experience of rogue penalty fees to the OFT, go to www.oft.gov.uk
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