How to Prevent Online Fraud
Keeping Personal Financial Information away from Fraudsters
Nov 10, 2008
Online fraud is still growing at an alarming rate and that doesn't even take into account the large volume that is never spotted or reported. According to a report by Garlik there were 250,000 incidents of online financial fraud in the United Kingdom, a jump of 20% on the previous year.
Whilst there are no guarantees in terms of preventing online fraud there are a number of sensible steps that can be taken to prevent it from happening in the first place. A lot of information is gained as a result of pure ignorance and slack procedures.
Use a Secure Wireless Connection
If a network isn't password encrypted anyone can access personal information. It is like having a cash point card with no pin number - there is no fraud prevention at all. A simple password prevents someone sitting outside with a laptop from accessing information.
Only Buy from Secure Sites
If a site is secure it will show https rather than http in the address bar. There will also be a yellow padlock in the corner of the browser. Unless both of these are displayed it isn't a secure web site and personal information is at risk.
Regularly Check Bank Statements to Identify Fraud
It is imperative that online bank statements are checked for transactions that haven't been authorised. Query anything that isn't recognised with the bank as only 6 months is given to chargeback to the merchant.
Don't Become a Victim of Phishing Emails
Most people will have received an email from a source claiming to be their bank. The problem isn't clicking on the link, it is following the advice in the phishing email through to a logical conclusion. This isn't an official bank email asking for the provision of security information, it is that of an online fraudster.
Look at the web address directed to and it can be seen that it isn't a proper bank web address, it is usually a free domain with the bank's name at the end. Sure, the web page looks alright, but the actual web address gives it away.
No financial institution will ever ask a customer to click on a link to their site from an email so don't ever do it. Just log on at the official web site address. If there is any doubt, telephone the bank's fraud department and ask them.
Register for Verified by VISA & MasterCard Secure Code
Visiting either of the respective sites allows a customer to add additional security information to their cards. Before anyone can use either card online they will now need to answer security questions and not just the CV2 code before making a purchase.
Don't allow fraud prevention to turn into a form of paranoia. Following the guidance above will help prevent all but the most bizarre cases. If an incident does occur, be sure to report it to the bank quickly in order to chargeback and recover any fraudulently appropriated funds.
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