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The UK Cards Association has warned about an old-style phone scam that is increasingly being used by fraudsters across the UK.

The scam involves unsuspecting cardholders being called and duped into handing over their debit or credit card, and revealing their PIN, by a fraudster pretending to be from their bank, card company or the police. Just this year more than £750,000 has been lost to this type of fraud, with the criminals responsible stealing an average of £10,000 per incident.

The scam begins with the fraudster phoning up, typically claiming to be from the prospective victim’s bank, and saying either that their systems have flagged up a fraudulent transaction on their card or that their card is due to expire and needs replacing. By seeming to offer assistance, the fraudster tries to gain the victim’s trust. In most cases the victim is then asked to ‘activate’ or ‘authorise’ the replacement card in advance by keying their PIN into their phone’s handset.

The fraudster or an accomplice then poses as a bank representative or a courier to pick up the customer’s card from them at their home, sometimes also giving the victim a replacement card (which is a fake). In some cases a genuine courier company is hired to pick up the card, which the victim has been asked to place in an envelope. Once they have the victim’s card and the PIN the fraudster uses them to withdraw cash and go on a spending spree.

Top tips to avoid this scam:

  • Your bank will never ring you and tell you that they are coming around to pick up your card, so never hand it over to anyone who comes to ‘collect it’.
  • Your bank will never ask you to ‘authorise’ anything by entering your PIN into the telephone.
  • Never share your PIN with anyone – the only times you should use your PIN is at a cash machine or when you use a shop’s chip and PIN machine.

If you think you may have been the victim of a fraud or a scam of this nature you should call your bank or card company immediately.
DCI Paul Barnard, Head of the Dedicated Cheque and Plastic Crime Unit (DCPCU), the special police unit established by the banking industry to fight fraud, said:

“You should never hand over your bank card to someone who turns up on your doorstep, however convinced you are that they are genuine. Likewise, you should never give anyone your PIN or punch the number into your phone as a result of someone contacting you out-of-the-blue – wherever they claim to be from. If you have any doubts when approached in this way you should hang up the phone and call the organisation back on a number that you know is correct. If you think you have already been a victim of this scam, contact your bank or card company immediately. If you are the innocent victim of card fraud you will not suffer any financial loss.”

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