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Increase in fraudulent use of
credit cards reported
by David Kelleher
There has been a marked increase in the fraudulent use of credit
cards over the past few months, The Malta Business Weekly has
learnt.
ISP sources said they had received a considerable number of
complaints from clients whose credit card had been used on-line
without their knowledge.
Credit card fraud costs banks million of dollars a year and
recent statistics show this value reaching the one billion figure
very soon.
While credit card security on the Internet has improved, the
real threat does not come from hackers online but from individuals
who steal the cards themselves from unwary people.
With most websites today using SSL technology, it is becoming
more difficult to steal credit card information. However, a
high level of fraud remains because of an increase in the theft
of cards from unwary people, sources said. A spokesman for Bank
of Valletta told The Malta Business Weekly that the bank had
recorded an increase in the number of cases of lost/stolen cards.
“While it is true that BOV has recorded an increase in
the number of cases of lost/stolen cards as well as complaints
relating to the fraudulent use of a card account number, this
has to be placed in the context of a card base that is increasing
at a rate of over 20 per cent per annum as well as the increased
usage of such cards. Indeed, the increase in the number of cases
of stolen cards and related complaints is in no way proportionate
to the increase in the card base,” Bank of Valletta said.
While the client should not be duly worried because all credit
card transactions that are suspect will be refunded, companies
such as ISPs and online retailers will still have sent out the
goods.
“The cardholder is protected to a certain extent. Those
who will suffer unless the culprit is caught in time are the
retailers who provide the goods. Recouping the expense is not
easy,” one affected source said.
All local banks advise customers to inform the bank immediately
that their card is either stolen or lost and card security is
a priority.
“The bank’s advice to customers, as specifically stated
in our Code of Practice, is that the cardholder is to report
a case of a lost or stolen card immediately to the bank. We
give a lot of importance to card security and, in fact, operate
a 24-hour telephone service (tel. 234821) so as to enable the
cardholder to report lost or stolen cards immediately.
“This will ensure that, once the cardholder reports the
loss or theft of his card, he will only be liable for those
card transactions that are effected prior to the bank receiving
such report. With regard to fraudulent use of credit cards over
the internet, most cases relate to a fraudulent use of a credit
card number for internet transactions. In such cases where transactions
would not have been authorised by the cardholder, the bank charges
back such transactions upon it being notified by the cardholder,”
Bank of Valletta said.
To limit the damage, cardholders are advised to exercise great
care when giving out their card number over the internet and
should only do so to reputable and secure sites.
Card holders should also ensure that when on them the cards
are kept in a secure and not easily accessible place.
Some guidelines:
• Do not keep your cards and PIN number together;
• Do not allow anyone else to use your cards;
• Always take reasonable steps to keep your cards safe
and your PINs secret at all times;
• Never write down the PIN on your card or on any record
associated with it;
• Ensure that the PIN notification sent to you by the bank
is in no way tampered with when you receive it and ensure that
you destroy it immediately you receive and memorise it;
• Never write down or otherwise record your PIN without
making a reasonable effort to disguise it;
• Sign the card immediately you receive it;
• It is essential that you inform the bank immediately
you become aware that your card is missing.
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