Stay Card Sharp - Check Your Statements
Sydney Morning Herald
Wednesday April 28, 2004
The strategy To keep my credit card secure from fraud.
Can I do that? Credit card and other types of fraud are definitely on the increase and, while you can't ensure you're completely protected, there are some basic safeguards that can help. Denis Orrock, the general manager of InfoChoice, says the most fundamental mistake many people make is not reading their credit card statement each month. "It's easy to overlook a small charge, but if a couple of thousand people have been hit by the same charge it's not a bad earner [for the person scamming the system]," he says.
If you pick up any dubious transactions, report them to your bank immediately. Steve York, the general manager for investigations and fraud control with the Commonwealth Bank, says there are regulations on how suspect transactions must be treated, but generally you'll have a better case if you report them as soon as possible. The bank will investigate any disputed transactions and reimburse them where appropriate.
Does that mean the bank will take my word that I didn't spend the money? Orrock says the burden of proof is generally on you. But he says banks are quite pragmatic and will usually reimburse you as long as you put forward a reasonable case. Things such as your past spending patterns and where you were at the time can be taken into account. Obviously if you can show you were in Australia at the time someone was spending like a drunken sailor in Hong Kong, you'll get your money back.
How careful do I need to be with my card? York says we need to think of our credit cards in the same way we would think about leaving our wallets or chequebooks lying around. Make sure you know where your card is at all times, says Orrock, and don't store passwords and PINs with your card. When it's time to get a replacement card, he says, ask for it to be sent to your bank or work post office box, as thieves can hang around home post boxes. If you can, keep your card in sight at all times and make sure no one copies down the details or swipes it twice. Orrock says scamsters have used double swiping both to incur additional charges and to produce fake cards that can be used by someone else. If your card is swiped twice, says York, make sure you get the receipts and are satisfied all is OK.
Does that mean I shouldn't let the waiter take my card in a restaurant? Ideally no, but York says this is often impractical. You need to be sensible about the risks. If the restaurant is one you know well and trust, it probably won't be a problem. But if you go somewhere new, particularly somewhere overseas where scams are rife, you should make a point of going to the cash register to pay with your card.
Are online transactions a higher risk? We hear a lot about online problems, but again it's a matter of being sensible about the risks. If you are transacting online, says York, make sure you only use computers that have current anti-virus software and security. He says computers in internet cafes may be particularly vulnerable to viruses that can steal your personal information. Only transact on secure websites (look for the little padlock in the taskbar and for other security details) and never send your credit card details by email. Never, says Orrock, transact on a website without a contact phone number.
Oddly enough, many consumers who refuse to transact online are only too willing to give their credit card details out over the phone. This can be even riskier, as you are giving away important information such as your card details and expiry date. If you must pay by phone, make sure you're dealing with known and reputable businesses.
How worried should I be? York says
that, taking into account the incredible number of credit card transactions made each month, the incidence of fraud is quite low. You don't have to be paranoid, but it pays to be aware of the risks and to do simple housework - like hanging onto your receipts and checking what's on your credit card statement.
© 2004 Sydney Morning Herald
