Card fraud is on the increase. 40 per cent of all card fraud is committed abroad, and even at home, in the first half of 2008, figures showed a rise of 14 per cent. HSBC are looking to introduce programmes which will could affect up to 10 million card accounts and many millions of card transactions - which may well mean that many card transactions every day will be refused or even cancelled.
Card fraud fell for several years in succession up to 2007. However, by 2008, even with the increasingly sophisticated systems used by the banks, up to 600 million pounds had been stolen by the fraudsters. Previously, HSBC checked up to a quarter of card transactions. Their new system means every card transaction will be checked, and a decision made almost instantly, in real time.
SAS UK are developing and providing the software for the new HSBC system. Their spokesman, Bart Patrick, says "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".
He says as soon as banks come up with one solution to card fraud, the criminals find a new way to do things. It has become almost like an arms race, with each side making advances in turn. Chip and pin was seen as the solution to card fraud, and it was, for around 2 years - now the fraudsters have beaten it - so now the banks have to come up with something even more sophisticated. Unfortunately, as the banks introduce more stringent systems, it is often their own customers who find themselves having their cards declined.
Wendy Samson advised her bank that she was going to Borneo on holiday, so that she would be able to access her bank account while travelling. On the first day of her holiday, all of her cards were declined. The first day was almost completely taken up with trying, by internet and telephone to resolve the problem. HSBC - Ms Samson's bank said that if a customers card is blocked in error, then they aim to resolve the problem as quickly as possible.
APACS is the trade body for many card issuers - they say that customers may have to accept in the future that their card may be declined or blocked on occasion in some shops. They say this is the price we may have to pay in order for the banks anti fraud systems to work properly.
ABTA - the trade body for the travel industry - advise that travellers try to take a range of payment options. Try to take some cash for the first couple of days expenses. If possible, have cards from at least 2 different banks and consider travellers cheques, which offer an extra degree of security.
With so much card fraud being committed abroad, any unusual spending patterns can trigger alarms with your bank, just as at home. These safeguards are there to try to protect you and your money from the fraudsters, so maybe we will just have to learn to live with them.
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