Credit card customers targeted in widespread phone scam

By Julie Sherrier

Call centres violate security standardsA banking industry group has warned credit card customers about an ongoing phone-based scam.

According to Financial Fraud Action UK, conmen have previously targeted Asian communities and the elderly. However, latest evidence shows that the scam is "becoming more widespread" and that other groups are being affected.

Commonly, victims of the fraud are cold-called and warned that there has been recent suspicious activity on their credit card. They are then asked to write down their PIN on a piece of paper and put it, along with their card, into an envelope. A courier is then sent to pick up the package.

Katy Worobec, head of fraud control at Financial Fraud Action UK, said: "Fraudsters have been targeting particular groups of cardholders."

She added: "So far some of the victims have included pensioners and members of the Asian community. However, what is now clear is that the scam is becoming more widespread."

Data from CIFAS, the UK's fraud prevention service, have shown that overall recorded incidents of fraud rose by 16% in 2008.

Published: 23 October 2009