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Fraud victims told: Go to the bank, NOT the police
Last updated at 07:52am on 30.03.07
Victim of fraud: Don't bother reporting it to the police
Hundreds of thousands of people who fall victim to credit or debit card fraud have been told to no longer bother reporting it the police.
From Sunday a change in the law, which has been approved by the Home Office, means victims should go to their bank rather than the police station.
The move has been condemned as "astounding" by security experts who suggest it amounts to the privatisation of the justice system.
They say it appears an attempt by the Government, the police and the banks to push the crime, which costs the nation £428 million a year, under the carpet.
The changes are contained in the smallprint of the 2006 Fraud Act, which comes into force on April 1 - April Fools' Day.
Critics warn that police teams with expertise in investigating card fraud are being disbanded - so losing vital expertise in tackling what is a major crime.
They fear that the investigation of card fraud will increasingly be left to bank staff who don't have the knowledge, expertise or powers to do the job properly.
While they suspect the banks will be able to manipulate card fraud figures to mislead the public about the severity of the issue.
In reality, card crime is huge, with just 700,000 individual cases last year, with the average loss per case amounting to £608.
The idea of giving banks more power in this area will alarm many consumers.
People caught up in this sort of fraud routinely find their banks are extremely unhelpful and aggressive.
Often victims are treated as criminals, with suggestions their claims are fabricated.
It often takes victim a great deal of time and hassle to get a refund of the money taken from their account.
In the past, these people could turn to the police for help. However, this avenue will now be closed under a regime which will direct all plastic card crime reports through the banks.
The banks will be responsible for collating figures and passing these on to the police, together with any evidence they uncover of major fraud gangs.
The proposals were spelt out by APACS, which is the trade body for the plastic card operations of the big banks and credit card companies.
It said: "This Sunday, new procedures come into effect in England, Wales and Northern Ireland which means that banks and financial institutions become the first point of contact for cheque, plastic card and online fraud offences.
"In most cases consumers will be required to report instances of this type of fraud straight to their bank or building society and not to the police. It will be up to the financial institution involved, and not the account holder, to pass details of the relevant crime on to the police.
"This change in the way fraud is reported has come about after the introduction of the Fraud Act 2006 and follows discussions between the Home Office, Association of Chief Police Officers and the financial sector.
"The aim is to reduce the level of bureaucracy involved in fraud recording and to streamline the reporting, recording and investigation of such frauds."
Card fraud expert, Andrew Goodwill, managing director of security firm Early Warning UK, condemned the shift in responsibility as 'good news for plastic cheats".
He said: "Everyone knows credit card fraud is a mushrooming problem in Britain. Yet, in effect, from April 1, card fraud is suddenly no longer a police matter, but an industry problem. "Police cheque and plastic crime units are closing their doors across the country."
Mr Goodwill said: "I am astounded at these new rules which will have a negative impact on the detection of card fraud. "Our police officers received some of the best training in the world when it comes to collecting evidence of fraud.
"Why is it now are we being short changed by allowing the banks to collect this evidence? Fraud is a criminal offence after all.
"What extra training will bank officials receive to do the same job? I doubt any.
"With the banks then reporting these crimes en masse, will the banks report all instances of card fraud to the police in this way or will they pick and chose and just report the ones where they suffer a loss.
"If the banks don't report all card fraud, simply writing some of it off, the result will be a distortion of the extent of credit card crime .
"I believe this new reporting procedure is just a way of pushing what is for the Home Office and the banks an embarrassing problem , under the carpet."
Communications director at APACS, Sandra Quinn, insisted the changes are an attempt to cut bureaucracy.
"This change simply removes an additional level of reporting and will provide greater consistency for the reporting of fraud losses in the UK," she said. "APACS will provide the Home Office with the industry's fraud figures for cheque, plastic and online banking fraud losses - these losses will then be published as part of the government's annual crime figures, thereby giving a more realistic picture of the scale of this type of crime."
She said that where card is taken as a result of a second crime, such as the theft of a wallet or burglary, these second crimes should continue to be reported to the police.
Miss Quinn added: "The threat of fraud is, unfortunately, a part of our daily lives. The industry remains committed to a multi-layered approach to tackling card fraud."
Reader views (38)
Here's a sample of the latest views published.
My partner has just had 700 pound taken out in three days... i cant understand how nothing is being done ...they know cloaning of cards is going on but do nothing about it...the bank knows that the activity of her account something was wrong so had stopped her card , but only just realised that someone had made 3 withdraw ments of which she did not make from london miles from where we live. so far they have been helpful saying they will repay the money but i am very skeptible about this until it shows back in her bank.
- Wayne, basingstoke england
I am very careful and noticed within hours of fraud use on my card for over £1500. Imediately cancelled the card, notified the card company, contacted the seller, got a delivery name and adress for the fraudster who was waiting to recieve the goods. Got in touch with Thames valley & Met police non of which even wanted to take any details, eventually they did and then called giving the crime number and also to inform me they will be doing nothing, not even going to the premises where they are waiting to recieve the goods.
Police what a joke (all the resources are concentrated on speeding) seen over 6 officers hiding in waiting for speeders doing 33mph)
- Derek, Bucks
In November 2008, I ordered an item through an internet shop and paid £99 with my credit card. The company I was buying from never sent me the item, and after many attempts for an explanation was told that the item was not in stock. I then cancelled that order and requested my money back.
Thery ignored me and their telephone answering message said they "were no longer trading."
My bank (Lloyds TSB) refused to reimburse me, and after providing documentary proof that I cancelled within the Terms and Conditions, the Financial Ombudsman Service has simply passed the buck back to the bank (twice) without making a decision, or even explaining to me why.
What is the use of having so-called watchdogs and regulators who avoid any responsibility? They are wimps and the government should sack them and stop the hypocrisy of pretence about safe-guarding measures.
- Paul Nicholson, Newcastle upon Tyne, U.K.
I thought that i was safe,My debit card was only used on small purchases,Nothing over £20 on amazon and two computer supply shops,But on tuesday i was phoned by automated security call from my bank,turned out someone had made 3 withdrawals from my card £50 then £60 and then £70,But only the first two were taken as i only had my benefits paid into the bank,and the £70 was over the limit i had,i know its only £110 taken,But for me thats like a thousand pounds,as i have now got to live a week without benefit money.the bank know that the money was taken out my account at 9:15am on tuesday 27th april,and made as payments to betfred,the bank say that it is possible to find i.p address of computer fraud was commited,but it could be an internet cafe.end of story.
- Ray, falkirk
someone made a credit card application online in my name and sent the card too my house,i have never used this card and dont want it, as any offence occurred, and if so what can i do?
- John, liverpool
I've just discovered £10Ks worth of fraudulent transactions on my credit card made over a period of 3 days. The bank concerned was very helpful and tells me I am not liable for any of this spend, which all seems to have been done over the net, although there are two small transactions for a chinese take away in Romford, I hope the perpetrators got food poisoning!!!!!!! I only discovered this fraud as by chance I checked my on line banking, and as my credit card is issued by my bank the transactions showed. The only time I use my credit card is for puchases through Amazon, or Ebay via Paypal. You would think these two would be amongst the most secure - it just goes to show!!!!!!!!!
- Sue Honeywell, Bristol, England
Most online credit card fraud could be avoided by a very simple procedure, make the 3 digit security code on the back good for one transaction only. A list of randomly generated 3 digit codes would be kept by the card holder and in his card account details, he would then delete the code just used for a transaction and proceed to the next in the list. He could cycle through the same list of numbers or receive a new list when the list is depleted. Of course he could instead receive an automated email with a new 3 digit code after each transaction. I have already suggested this to Barclaycard and wait to see if they comment.
- Tc, woodhall spa UK
My debit card was cloned just before christmas. They couldn`t clear off my account, only my daily limit was missing by being taken in cash from an ATM in Morocco. I discovered on time something was wrong... But still... Its all true, we should protect ourselves, and take responsibility for our valuables, but this has become more frightening now. Im so paranoid lately. I just recived a call today from a gentleman with a very strong and very typical foreign accent, He wanted to help me clear off all my credit card debts. All he needed to know was some of my personal information. I nicely ignored. Then he texted me some of his companies information such as the full name of the ltd, their website and the FSA registration no?! U know what, I looked it up. Suprisingly after a short research trough the net: there is no such company by the name, but the website and the FSA exist and indicates two totally different company far-far from each other only matching in their activities. Honestly. It was brave. Is there anyone who eats such rubbish??! Such visible and dare try to not only steal but personaly ask from YOU for the information. Sadly, YES there are many people who do tell them what they need to know, straight away without a question. And until it is so, nor the police or banks will be able to stop them. Its just the beginning guys. Grandma was right about keeping the money under the pillow, Im considering to do the same.
- Td, London
I have been hit in a big way and still reeling from it! Now fighting the last battle with a big blue bank over my innocence in a 3k hit. Now sold on to a collection company who on the face of it, are as helpful as their scripts allow. I am now advised, despite continued refutting, a seperate hit on my 'green bank' bank account of which was refunded , successfully convicting an 'ex' for the further half dozen credit cards/identity theft, a paying member of Experian, a business account holder with a healthy account balance, I am dismissed and remain liable. I'm really drained with all this. Then after reading the above home office dict', read this Telegraph article! click the link please. http://www.telegraph.co.uk/finance/markets/2793441/Hard-line-plans-to-tackle-business-fraud-unveiled.htmlWhat's that all about?
I'm being a bit selfish here, personal circumstances prevailing, but it is written above that the individual has eroded redress whilst business, 'BIG' i imagine, gets protection measures. Fraud is fraud, that's the law. Can someone tell me where these statements harmonise? Does business fraud get Police attention? You can see where i'm going with this...
Regards
- Phil, Bucks UK
we all have a responsibility to guard our personal details and private matters,shred all personal items not in use,including old magnetic strip cards-even old loyalty cards-they can be used to store data,and if needs be-make the fraud difficult by withdrawing cash from the bank by personal cheque/card over the counter at lunchtimes etc,that way the banks will prhaps be minded of the scale of the problem when queues stretch round the block-just like in the recent years before this electronic banking era[I mean in the 80s-not the dark ages] we're all too soft and expect everyone to wet-nurse us through life,we should be prepared to do something for ourselves to stamp out the huge fraud problem.My friends readily let me know their pin umbers-cos they're too lazy to go to the bank themselves sometimes,and I go for them if I'm already making the trip!!!astoundingly stupid of them,I know,but then they don't think it will happen to them-and after all they do know me-don't they??
- Jg, lancashire
I too have been the victim of fraud and identity theft - no one cares!!
I wrongly assumed this was a crime.
I know who the thief is and his address.
Police and bank and companies house (he has gone bankrupt) etc etc dont give a ....
Good luck to any other victims
- Debbie, devon, england
I have recently been impersonated twice by someone attempting to access my credit record via one of the credit check companies. The company wrote to me explaining the impersonation, the only check which they made to make them suspicious was a wrong date of birth. They did not issue my credit history but made two charges of £12 nevertheless. The person must have had my credit card details, including the 'security' number on the back. Their fraud department referred me to the police, but they seem to have no mechanism to investigate. They know the internet address of the person but cannot tell me, under the data protection act !
I have stopped the card and am now watching all transaction details on my other cards and bank account like a hawk. I have written to the other credit check companies to be aware of possible impersonation of myself.
Why should anyone want details of my creditworthiness? To know they could operate a big transaction, presumably.
My advice? Shred everything.
- Alan Howard, Leeds, Yorkshire, England
as a senior fraud investigator I have come across fraud on credit cards I should not say this but thier is a policy not to pay out on fraud.
- Bob Mccallum, uk
My Egg card was rarely used so only checked the account monthly. I found that nearly £7000 had gone out on various purchases by a person in Uganda and spending only stopped automatically when my card reached its limit. At no time did Egg notice or report this to me. When I reported the fraud to Egg I was told I would have a response in seven working days. Now, a month later, no response from them and phone calls to the fraud unit "There is no one here to take your call at present". What is going on?
- Mandy Clark, Diss, Norfolk
I am a victim of visa card fraud crime. I am living in London and not travelled outside UK for the last two years. But money was going off from my account for transaction made a country called Benin (in Africa). Whole of my account has been wiped out. I tried to report it to police, but they wont pay heed to any of my word. Also reported to Lloyds tsb bank, but there incompetency is beggars belief. They said I have to wait 7 to 10 working days and after investigation they will consider offering a refund. I am really distributed by their treatment and mentally stressed out. Any body has any suggestion what to do in this circumstance. Thanks.
- Asif Akash, London
I work in IT and am paranoid about security of my credit cards. Nevertheless, I recently had at least two transactions for airline tickets made. I noticed initially when my bank sent me an email saying that my "high security" password had been changed. (this is the password which Halifax and other card issuers have as a second level of checks with online companies)
I managed to speak to EasyJet, and they found out the flight booked using my credit card. But they will not tell me anything about the purchase (due to data protection act) - but I argued the case that it's my card and I have a right to know as I paid for it.
They did tell me that the flight has been booked, and that the flight is due "in little over a week" - they have the details of the passenger, the email address, and the ability to prevent the passenger from boarding....but would they ? NO...
I was told by my bank and by the the police to allow the transaction to go ahead as its my personal safety is more important. That these gangs tend to use violence if impeded from using my card.
What is this world coming to ? - I cannot report this fraud as a crime to the police. The bank is happy to give me a refund but they are able to stop the person travelling....but they still allow it to happen.
Please - change the law !
- Matthew Field, London, UK
I have been running an ecommerce business for several years. We are victims of credit card fraud every week. The reality is the police and the banks support the crooks. The banks couldn't care less as they steal the money back from the retailer and do not report the fraud to the police, even though they have the name and address of the crook in their database. The police do nothing are and are fit only to guard football matches and give out parking tickets.
- Steven Lee, Hasssocks, West Sussex
Welcome to Britain, Credit Card Fraudsters Welcome! 29th April 08
I am the MD of a company which trades online. Historically we have not suffered much from credit card fraud - until now!
I have spent almost 3 days "trying" to talk to police, Serious and Organised Crime Office, Banks and Credit card companies as we have uncovered a seriously organised credit card fraudster with the potential to catch the person. Will any of these organisations listen - no.
I am absolutely astounded that people who now commit credit card fraud as from 1st April 2008 will not be investigated by the police but instead you have to report it to the banks!
Wonder why credit card fraud is on the increase - now you know. Nobody will investigate it. So what are the police for? Is theft now not a crime? Is fraud not a crime?
Our "Gentleman" placed an internet order to the value of £750 with the cardholders correct statement address, card number and CVV code. He used a different delivery address which we posted the goods to. The card transaction was authorised by the bank.
The same guy has now placed another 6 orders for roughly the same amount, He has ordered using 6 different sets of cardholder details, six different delivery addresses and six different cards. The scary thing is two of the orders were 3d authenticated!
- Barry Atkins, Stockton On Tees, Teesside
Credit card fraud will never disappear, people get an incentive from the fraudsters who work in call centres to sell details of customers called "code tens" c10z. These are then used in mail order and opening bank accounts,
be careful when using cards in petrol stations and shops, if the shop assistant is swiping your card twice ask why. This action can be cloning your card by means of collecting data onto a reader.
Trust nobody, afterall people who work, work for one thing, money. If there is an incentive for something that is cash rewarding it will always happen.....
- Previous Fraudster, Lancashire
I was advised by John Lewis that my credit card had been used by someone else between 5th and 12th April 2008, when they blocked it. One of the transactions they mentioned was a £400 cash withdrawal. I could not understand how anyone could gain cash without having my PIN. No-one has my PIN so this worried me. I kept asking questions but they said it is not my problem as they had refunded the transactions and were now dealing with it. They would send me a new card within 7 days. They seemed to already know these transactions were not mine without even asking me. I asked if I should report this to the Police and they said there is no need as their fraud department are dealing with it. I was left feeling very disturbed as I only tend to use this card in the supermarket and the garage. I do not understand how my card can have been cloned when I am so careful.
- Lynne Heather, Bourne, Lincolnshire
I had my Barclays debit card with pin number in Tunisia this week. The police were aware on Saturday of the problem but no body had any warning as people queued to use the machine including me. I have found Barclays to be very unhelpful, even though a fraud department phoned me to tell me what had happened. I now have to wait up to three weeks to get any of my money back which I find disgraceful. Why aren't these cash machines monitored and have more security in them? With all of this modern technology surely they can disable the machine if anyone tampers with it. The bank clearly do not care about their customers after all we put our money in their hands. The problem is getting worse and will get out of control if nothing is done.
By the way this robbery has left me in some financial problems as I am moving in the next week and don't have the money to pay for it.
- Jane Lahive, whitstable england
2 years ago we had our current account raided for £2000 by a gang using a skimmer in a cashpoint. This week, one of my credit cards has been breached for £2400, this card is used only twice a month for regular payments related to my internet services. The breach must have come from one of those two companies, both of whom deny any blame.
- Rick, Suffolk
I had £1400 taken from my John Lewis credit card about a year ago. After the first phone call the missing money was immediately returned to my account.
When all the details were explained that there was no way that I could have used it their response was excellent.
Still had to fill a few forms in though.
If you don't check statements immediately after 90 days you would be liable.
- Bob, Abingdon
Only a month ago i had just over £3000 taken from my account, and because the pin was used I will be getting nothing back from the halifax bank... the worst thing, they think i have done it to myself. So I need the police to clear my name. If or when the culprits are caught I will be finding a new bank, I've been with the halifax for 20-years and it means nothing.
- Frank West Yorkshire, Huddersfield, England
I found £230 worth of top up mobile phone charges on my BC statement. Two each for three different phone companies totalling that sum. I have only ever used the Barclaycard on three regular internet sites and never used it in shops as I didn't know my pin. The card has never left my possession. Because I happen to have a mobile (on a contract paying monthly by DD) with one of the companies BC have asked me to prove that I paid my own top up bill by other means when I had already told them that I am on a monthly contract paying by DD so I cannot prove I did something, for something I don't have. I have now posted off a copy of my confirmation with the mobile company as well as my bank statement showing the £30 a month going out. I rarely make phone calls from home or my mobile either! It's been going on two months so far and I am still mystified how anybody got hold of my card number and were able to use it without a pin or number on the back to quote. I shred any statements that I throw, never fall for emails with links etc, and am a very careful person.
- Beverley, Potters Bar, Herts
A story from a Brazillian friend of mine who is legally living and working here at the moment. She has an account with Barclays and was recently a victim of fraud. After having stayed at a hotel in London she discovered someone had charged £500 on her card number for another stay at a later date. The bank says she has to deal with it the police say the bank has to deal with it. She has approached the hotel and seen the signiture on the bill it bears no relation to her signiture or even her name and yes the hotel aren't interested in doing anything. She the contacted the bank and the police with this information and both still won't do anything saying it's not their problem. I recommended she chain herself to the doors of her Barclays bank, that is a last resort but it would be interesting to see if the police turn up.
- Shaun Dyos, London
I had two cards used on the same day. I have only used one card at only one location. It should be really easy to trace the culprit. However, the credit card companies told me to go to the police and the police told me to go to the credit card companies.
I will get my money back but the culprit is being left to get on with it as no-one has taken any notice of my information.
- Jean, London
I'm appalled. We've just had our credit used fraudulently to make an Easyjet purchase. As we very rarely use the card, the last time being at a large electrical retailer, and as there is a clear spending trail, it should not be overly difficult to track the culprit, but no-one is interested. I think the government have just given up on it.
- Barry Cushway, Sevenoaks, UK
In response to M Powley. I am disgusted by the comment, "the fraud is against the reseller not the cardholder." My husband and I have just found that we are two of the hundreds and thousands of people that have been hit by the scum of the earth that steal their money. Yes the money will be refunded and we are thankful for that but we feel sick that someone has taken our details and used our private bank account. Believe me it is a horrible feeling to see the money you've worked for and saved has been stolen from you and the bank by scum. I hope M Powley never feels how we feel at this time.
- W. Mcadam, London, UK
This Act is unbelievable. Suppose one has a thief working in a hospice. He steels credit card details from several vulnerable people with different Bank accounts. No pattern of theft will be spotted by individual banks and they do not have to report these "isolated" incidents to the Police and, even if they did, the Police are disbanding this field of work - so, no-one is looking for a "pattern" of behavior. Madness.
In the above case, the pattern would be location and age. If it was a supermarket, it would be location. Once detected, the personal characteristics of the thieves would also probably show a pattern and measures could be taken to improve the situation.
Surely it is stupidity beyond belief that our politicians cannot forsee what is bound to happen. I personally feel that they are so thick that it will only dawn on them when, God forbid, they are in a hospice themselves and then it will be too late for them to do anything about it.
- John, Cambridge
Now that card fraud has been decriminalised we should all get a counterfeit card and pay our speeding tickets and parking fines with it. Would the police refer it to the banks? I doubt it!
- C Yardley, Mansfield
I'm afraid the press in general is missing the main point of this issue. Individuals whose credit cards are cloned or otherwise used fraudulently, are 100% refunded by the card issuer. This is not because they are kind souls, it's because they take the money by Direct Debit from their other customers, the reseller/shop/online company who has to use their services. The fraud is against the reseller, not the cardholder. The police have always refused to investigate these frauds, even when given full name, address, mobile phone number and date and time of the delivery of the fraudulently acquired goods. This is not a game for a few teenage hackers, it is organised crime and is operated by gangs across the UK and beyond operating from call centres. Is there anyone out there, in government or the police who actually care that organised crime is being given carte blanche to carry on defrauding online retailers?
- Moira Powley, Norton Bavant, Wiltshire
It does make sense that banks investigate banking system fraud. The police have neither specialised knowledge nor instant access to account details.
There's no such thing as an "untraceable company", what they meant was they didn't bother to follow it up with the Swedish bank. If a bank won't believe you and refund your money, there's a formal complaints procedure backed up by an ombudsman. Use it (and after you win, close your account).
- Nigel, London
I had £1,900 taken from my account last year (by a UK company), I reported it to my bank who told me it would take six weeks to replace the money but at no point did they ever ask me to report it to the police, just to fill in a form.
- Trevor Roll, London
I agree with Roy. The police have much more on their politically-correct agenda than to bother with crime. From now on, every Brit will have to take it upon him/herself to deal with any criminal who has done them wrong. No more middleman.
- Phil Jones, London
Quite right too! The police are far too busy to be concerned with trivia like crime.
- Roy G, Solihull, England
This is awful. My partner had money stolen from his bank account, withdrawn by some imaginary company that was untraceable in Sweden. The bank wouldn't help him because they said he had to prove it wasn't him. He has never purchased a thing online and doesn't have access to the internet.
- Isabel, Woking, England
This is a good idea because
a. It will force banks to employ more staff so that they can share their massive profits with the community.
b. It will save police plenty of valuable time which they can put to better use.
c. Banks will be motivated to exploit better than Chip and PIN system to deter fraud crimes.
- Tom, London
