Make sure you know how to protect yourself:

• Keep your finances private
• Protect PINs and passwords
• Keep monitoring
• Stay aware
• Know what to do if the worst happens

Bank fraud has just continued to grow – and we’re not talking the fat cat bosses here! This is about scammers, fraudsters and online con-artists who are keen to get their hands on our cash.

We need to be ever more vigilant to stop criminals using our details to steal our money or trap us in fraudulent credit applications. Some of the signs that you’ve been a victim of fraud are more obvious than others, but to protect yourself effectively, you need to make sure you’re on top of your financial situation. Keep an eye on bank accounts and check those statements each month!

Here are the steps for protecting your details from falling into the wrong hands:

How to protect yourself

Step 1: Keep your finances private

Never throw away whole receipts, bank statements, utility bills or other documents that can be used by a fraudster to assume your identity. Your rubbish bin is a target for fraudsters. Always shred personal information before throwing it away. You can grab a cheap shredder at Argos for £10.99.

Never disclose personal or financial details to anyone ‘cold-calling’, even if they claim to be from your bank, the police or another official organisation. Also, only provide personal information and credit card details online when you are on secure (https) sites displaying bona fide logos of secure payment systems, such as Verisign or Worldpay.

If you have documents stolen, there is a strong chance these will be used to commit fraud in your name. If this does happen contact the credit-referencing agencies Experian, Equifax and Callcredit to make sure that a note is put on your record.

If you move home, redirect your post from day one. The new occupants may at best throw your letters in the bin instead of forwarding to your new address; at worst, they might use the information to steal your identity. Try to keep your personal information in different places around the house so a thief will find it more difficult to obtain complete information. Keep as much as possible locked up.

Step 2: Protect your pins and passwords

It is a good idea to use different passwords for different accounts on financial websites and bank log-ins. If a fraudster accesses one, they are less likely to be able to access all accounts. Avoid using your mother’s maiden name, this is easy information for fraudsters to obtain. The same goes for your PIN number, do not use the same PIN for all of your cards. If your cards are stolen and they figure out your password they would now have access to all your accounts. Never write down any passwords or PIN numbers in a manner that is accessible to others, so never store them with your cards. If you do, your bank may believe you were acting without reasonable care, which means it could make you liable for all the stolen money. So always protect your PIN, shield it when you are using your debit card in shops and at cashpoint machines.

Step 3: Keep monitoring

Check all receipts against your bank statements carefully and regularly. Always monitor information on your credit report. You can get your statutory report by post from Experian, Equifax or Check my file for a few quid. It is a great idea to view this report once a year so you can monitor if anyone has been fraudulently applying for credit with your name.

People who regularly monitor their credit reports typically spot if someone is attempting identity fraud in their name within a matter of weeks. In addition to your statutory report both Callcredit and Experian offer services that give you unlimited online access to your credit report and credit scores. The service alerts you when changes are made to your report so you can detect fraud quickly. Time is of the essence when you are the victim of fraud. If you spot an account or credit application on your credit report that you don’t recognise, contact the company involved immediately to request they remove the data from your file.

Experian’s CreditExpert costs £6.99 monthly, and Equifax charges £6.99 for unlimited online access (an additional £14.95 if you want a credit score.) It also charges an additional £3.99 for its Identity Watch service that alerts you to changes made to your credit report. Callcredit’s service costs may be the best value, it costs £12 for three months. If you sign up now Callcredit offers your first three months free.

Step 4: Stay aware

Fraudsters are targeting us online, in shops, in restaurants, at the ATM and when using cheques and debit cards. Here are some of the things you must do to protect yourself:

• Keep your credit card in your sight at all times A common scam used by fraudsters is ‘skimming’ your card details by swiping your card in a device that copies your card details. When you do use your card at shops, restaurants, or petrol stations make sure your card remains in your sight and is only swiped once.
• Use secure sites only. If you are going to purchase online pay attention to the beginning of the address. On secure websites the ‘http’ will change from ‘http’ to ‘https’ and there should be an image of a padlock at the top of the computer screen. Check this to ensure that your payment details are secure. Before you start purchasing online make sure your computer is protected with anti-virus and firewall software to prevent people from hacking into your hard drive and stealing information. The 2011 About.com reader’s choice awards declared by overwhelming majority that Avira’s AntiVir Personal was the free anti-virus of choice. Regardless of the software you’re using, always keep your anti-virus software up to date.
• Destroy all old debit or credit cards and cheque books. Make sure, when cutting up your cards, that you cut through the magnetic strip and security number on the back. This will prevent anyone else being able to use them if you are burgled.
• Be extra careful abroad. If you go abroad, use a prepaid card, cash or a credit card with a low credit limit. For more information check out our handy article on prepaid cards.  Do not use your bank card as fraudsters could then have access to your whole account. America is particularly bad for financial fraud, but wherever you are on holiday keep your money – particularly your plastic – safe.
• Photocopy your important documents. A good precaution is to take colour photocopies of your passport, driving licence and other personal documents so that if they are stolen you can get your identity back quickly. It will also make it easier to stop the fraudsters using your details for their own gain.

Even if you take all these precautions you may still find yourself a victim of fraud, but don’t panic. You’re not the only one who has been in this situation and you won’t be the last. However, do act fast. It’s in your best interests to act quickly and decisively in order to minimise the damage. Also, get in touch with the new government agency Actionfraud and let them know what has happened to you. They may be able to help but even if that’s not possible, your information will help them catch the fraudsters later and stop them doing it to others.

What to do if the worst happens

If any of your cards (credit, debit, store cards, etc.) or cheques have been lost or stolen, tell the providers as soon as possible. Keeping all these important phone numbers in one place will make it easier to start calling. It may be a good idea to store the numbers in your mobile phone.Consider closing your current accounts and opening new ones with different numbers and details. It sounds drastic but could be the best way if you are getting a lot of fraudulent activity.

You should also change all passwords for your online bank accounts. If you’ve experienced some form of identity crime, you may find it useful to register for protection through CIFAS, the industry’s fraud prevention service. The UK’s main financial services companies are all signed up to CIFAS, which exchanges information about victims of fraud to protect them from further fraud.

It costs £11.75 but it means that a CIFAS warning will be placed against your address. When a CIFAS member tries to process an application for a credit card, for example, they will see the following message: ‘CIFAS – DO NOT REJECT – REFER FOR VALIDATION’. They then have to make extra checks to make sure the application is genuine. Remember to report identity theft to the police as a crime and obtain a crime number (even if they don’t seem that interested in it!).

Contact Actionfraud to let them know what has happened. Give them as many details as possible to help stop this type of crime at its source.

Useful links

• Experian
• Equifax
• Check my file
• Office of Fair Trading
• Serious Fraud Office
• Fraud Identity Service (CIFAS)
• Actionfraud

Take notes during all financial phone conversations, in particular get the name of the person you speak to. Follow up your call with a letter outlining what has happened and the steps you have taken and keep a copy of that. The same rules apply when querying bills or transaction statements that you don’t recognise.

Never give out your PIN number or allow others to use your debit or credit cards. Giving someone your PIN number is again seen by some banks as acting without reasonable care and may leave you liable for all money stolen.