| New technology from a leading bank will mean that every credit card transaction will be scrutinised for fraud. The programme is being introduced by HSBC. It will affect 10 million accounts and millions of transactions. However, legitimate transactions may be queried or even cancelled as a result. Card Fraud was up 14 percent in the first half of last year and 40 percent of all card crime happens abroad. When they go abroad travellers are advised to take several different types of payment methods. Card fraud started to rise again after many years of falling numbers. During last year card fraud exceeded 600 million pounds. Increasingly complex systems are being used by banks to outsmart fraudsters. 25 percent of card transactions were previously checked by HSBC. A system being implemented means all transactions will be screened with decision made in a fraction of a second. A member of SAS UK, which is providing the software system for HSBC, said: "When you put your card in the machine it's carrying out an automatic check against your pattern of normal use - and making a decision about whether that is real or fraudulent." To reduce the levels of crime banks were constantly battling with fraudsters, he said. "Card fraud is an arms race. The banks will come up with one way of dealing with it; the fraudsters will come up with a way round it." "What we have seen with chip and pin - it was successful for 18 months, two years - the fraudsters have worked a way round it, so we are now looking at more sophisticated means." However, more people may see their legitimate transactions declined or queried, as banks become more proactive in targeting fraudsters. When Miss S.W went on holiday to Borneo, she took industry advice and told her bank that she was going. On her first day she found all her credit and debit cards were blocked. "I spent much of the first day trying to deal with my bank and getting internet access, and then had a rather frustrating phone call trying to make sure that I could use my cards for the rest of my holiday," she said. A representative of the card issuers' trade body APACS said it was something customers will have to accept. "If we as customers expect banks to do something about this we have to expect that from time to time we'll be in a shop and the transaction will be queried or card declined." "These systems are designed to stop cards being used fraudulently, so if that's the price we have to pay I think people should be prepared to pay that price," he said. Using your card frequently or spending large amounts of money can trigger the alarm at the user's bank. The same goes for using a card outside the UK. A representative, of travel agents' trade body ABTA, said travellers should not rely on their credit card. "Take a range of payment methods. Take cash for immediate expenses, take two cards, preferably from different banks and take travellers' cheques as well for extra security if it goes disastrously wrong." Miss S.W's bank, HSBC, said when it blocks a card incorrectly, the problem is remedied very quickly. If you are planning to go on holiday abroad, you will need a credit card. A credit card will make access to money easier for you. Visit Brokers Online. Brokers Online offers a range of Credit Cards ,one of which will suit your needs. Brokers Online is a fantastic financial website offering Life Insurance and many more Insurance products. |
