Thanks to our increasing dependence on the internet for both our banking and shopping, we are having our identities stolen more often. Lush is the latest company to admit to a security breach. The soap and cosmetics firm has admitted that hackers have breached their security and stolen customer card details in a cyber attack that could have been going on for up to four months. That means that a huge number of Lush customers are likely to have had their debit or credit cards used fraudulently.
So what can you do to prevent this happening to you?
In the case of something such as the Lush breach the answer is not much: the problem stemmed from the company’s own security holes. However there are a few simple steps you can take to make sure that you notice fraud fast – and can take action to stop it.
1. Check your bills and statements
It’s so easy to ignore a credit card bill or statement. Most of us have direct debits set up to pay them, so sitting down and reading through your banking paperwork is boring. But you should still do it. It is the quickest and easiest way to spot any unusual activity on your account. Your bank will notice – and hopefully notify you – if any large and unlikely payments appear. But they won’t pick up on ones that are not ‘unusual’ – if your card is used to buy something at The White Company a week after you’ve splurged at Lush it will look like a trend not a theft, for example. So you need to keep your own eye out and call your bank the second you spot something.
Also check your credit record regularly – two or three times a year – to make sure no-one has been applying for credit in your name. You can check it for £2 a time with Experian.
2. Protect your personal details
The best way to avoid becoming a victim of fraud is to closely guard your personal details. Invest in a shredder – you can pick one up for less than £20 – and shred anything with your bank details, credit card details, or anything else personal on before you throw them out.
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Also use your common sense. Don’t write your pin number down or lend your card to someone while loudly broadcasting your pin number. And don’t ever give out your account details. Your bank will never contact you out of the blue and ask for them. If someone from your bank has contacted you and you are suspicious, end the communication and contact your bank through their usual telephone number. That way you can be sure you are talking to the right people.
3. Shop carefully online
If you are going to be giving out your bank or credit card details online to pay for an item, take a few steps to make sure the website you are using is secure. Check the web address at the top of the page. Does it begin with https? This stands for ‘hypertext transfer protocol secure’ and means the website you are viewing is encrypted and secure.
Also, invest in decent anti-virus and spyware protection for your computer. These prevent hackers accessing your computer to steal your personal details and stop viruses getting into your computer that can monitor your keystrokes to access your banking details. AVG and Avast provide excellent free anti-virus tools. And ZoneAlarm offers a good free firewall – although if you are operating Windows you can just set up Windows Defender.
Don’t buy identity theft insurance
Never ones to miss out on a money making opportunity, both the banks and the insurance companies have launched products to counteract identity thieves. Identity theft insurance promises to cover the cost of any losses, monitor your credit record for you and put an identity theft expert at your disposal if you become a victim. At between £60 and £90 a year that might sound like a good deal. It isn’t.
For starters, you don’t need to worry about losing money if your personal details are stolen. According to the Banking Code you are not liable “unless we [the banks] can show that you have acted fraudulently or without reasonable care.” The only exception comes if you delay reporting the loss or theft of a card. If money is spent on it before you call you could be liable for £50 of the loss. And as for monitoring your credit report, you can do that yourself for a lot less than £60 a year. That means that you would end up effectively paying £60 a year in order to have access to an ‘identity theft expert’ (someone in a call centre). That’s very unlikely to end up being good value.
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