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Media Release 17 December 2002
Combating Credit Card Fraud for Christmas
Westpac and the New Zealand Retailers Association urge safe credit card use
Westpac is joining forces with the New Zealand Retailers Association to educate Christmas shoppers and retailers about the importance of safe credit card use.
Over the last year business customers and cardholders have experienced losses exceeding several million dollars. Based on Visa statistics, credit card fraud in New Zealand has doubled from 0.06% of turnover in 1997 to 0.12% in 2001. The biggest single credit card fraud committed last year was $5 million. Over half of fraudulent transactions are made over the Internet - even though they make up only 4% of transactions.
Westpac's Safe Credit Card Use campaign reminds shoppers and retailers how to prevent being defrauded, particularly over the Christmas period, when credit card use is at its highest.
John Albertson, Chief Executive of the New Zealand Retailers Association, says banks and credit card schemes invest substantial resources in reducing credit card risk, but there is no substitute for sound business practices at the point of sale. "The impact of fraud on businesses can be severe. Businesses lose the goods plus are held liable for the payment.
"Some retailers do not follow safe credit card use principles as closely as they should. An authorisation is not a guarantee that the cardholder has legitimate use of the card. It merely confirms that the order of the credit card numbers are correct, there are funds in the account and there are no stops on the card. Fraudulent signatures can also be a problem. Retailers need to ensure they check every signature."
John Albertson says there are over 40,000 retail stores in New Zealand, employing 17% of the workforce and generating an annual turnover of $46 billion. "When retailers suffer financially as a result of credit card fraud or theft, it becomes everyone's problem. We are very grateful for the support Westpac is providing retailers as education is the key to addressing this situation."
In addition to its existing merchant fraud monitoring team (who look for anomalies on authorisations, deposits, charge backs and fraud levels), Westpac initiatives include:
- briefing packs and presentations for retailers on how to minimise credit card fraud
- operating guides
- brochures and handy tips for customers
- provision of advice through a specialised website www.merchantservices.co.nz
- handy tips information on Westpac customer statements and receipts
- the dispatch of an informative article to all Westpac business customers with tips for safe credit card use.
Westpac spokesperson Jane Anderson says credit cards are a popular payment method because they give people instant access to funds from virtually anywhere in the world. "However, like all good things there are associated risks people need to be aware of. Westpac is taking a lead on this issue because the effects on victims can be devastating yet so easy to avoid if people are careful with their credit and EFTPOS cards.
"A popular method of obtaining a person's credit card is 'shoulder-surfing' where a perpetrator stands behind you when you're using an ATM or EFTPOS machine and memorises your pin. They then watch you until they get the opportunity to steal your card."
People should be particularly aware in bars and restaurants over the holiday period. Jan Bailey (not her real name), a recent victim of shoulder-surfing lost more than $4,000 when her credit card was stolen from her bag. "I had ordered some drinks at a bar in Parnell and the guy must have shoulder-surfed and memorised my pin. I didn't even notice when he reached into my bag and stole my card.
He then went to some nearby ATMs and withdrew $4,000 from my account within one hour. They watch you the whole time and then strike when you're unaware."
Jane Anderson says educating retailers and consumers is essential to reduce the occurrence of credit card and EFTPOS card fraud. "Shoulder-surfing occurs up to seven times a week in Auckland CBD. Retailers expect an increase leading up to over the busy Christmas period and at very busy places like the Viaduct Basin during the America's Cup."
Jane Anderson says by taking a few simple precautions Christmas shopping can be worry-free. "Westpac recommends shoppers follow these handy tips:
- Be careful with your card - always sign new cards immediately, when you make a transaction keep your card in sight at all times, always check your receipts against your statements
- Protect your PIN - memorise your PIN, never write it down, don't have a PIN that can be guessed easily and don't give your PIN number to anyone - that includes the Police and bank staff
- Be aware of who might be watching before entering your PIN at ATMs or when using EFTPOS - don't be shy about covering the keypad
- Know who you're dealing with online - check the website shows a physical address, phone and fax number, note all these details plus the amounts to be charged, shipping costs and time and date of the order
- Take care on the phone - never give your PIN over the phone, only make telephone transactions when it's you who has made the call and when you are familiar with the company."
Jane Anderson says retailers also have a key role in ensuring their staff are well informed on how to detect and prevent credit card fraud. "Reduction of the risk at the point of sale will significantly reduce the occurrence of fraud for everyone."
The Westpac Safe Credit Card Use campaign was launched in November and will continue through the holiday season.
For further information, please contact:
Jane Anderson
Public Relations Manager
Westpac
04 498 1657
027 4502 325
John Albertson
Chief Executive
New Zealand Retailers Association
04 472 3733
Westpac Handy Hints on Safe Credit Card Use
Retailers - what to look out for:
Look out for suspicious cardholder behaviour such as a person:
- taking their card from pocket not wallet
- having a large number of cards in their pocket and attempting to use several of them before one card eventually receives an 'approval'
- purchasing an unusual amount of expensive items indiscriminately
- making random purchases with little regard to size and quantity
- purchasing large items and insisting on taking them at the time of purchase
- buying a large number of a single item
- watching closely during authorisation request
- appearing nervous and in a hurry - may deliberately trying to hurry up the process and complain
- cannot provide photo identification when requested
- signing a simple signature e.g. John...
- using cards in different names.
Internet Fraud - what to look out for:
For orders delivered in New Zealand
- Check telephone directory and verify customer's name, address and telephone number. Be wary of cell phone number.
- For company orders, follow same procedure and if phone number matches, ring the number and verify that the person is employed there. Then speak to that person and verify order. Again, be wary of cell phone number.
- Ensure that couriers deliver goods to a person from within the home address or in the company premises.
- Ensure courier obtains and records ID of person goods were delivered to as well as signature on receipt.
- Some couriers have the capability of obtaining a carbonised copy of credit card imprint as part of delivery receipt. Use couriers that provide this service.
- If the customer comes to your shop to collect goods, ensure that you complete the transaction as you would in a normal card present scenario.
For orders delivered overseas
Similar process to that above, however contact Telecom International Directory Assistance. Verify phone numbers and then ring number to verify person works or resides there. Again speak to customer and confirm order.
Cardholders
Credit card fraud is widespread and can affect you at any time. If your card is lost or stolen you're particularly at risk. If you haven't done everything you can to protect your card, you might have to pay for purchases that are made on your card illegally. So to help keep your credit card safe, here are six easy rules you should follow:
1. Be careful with your card
When you receive a new card, sign the back immediately. Keep it in a safe place, and when you make a transaction keep your card in sight at all times. Always get your card back after using it. Always check your receipts against your statements carefully.
2. Protect your PIN
Do not choose a PIN that's associated with you, such as your date of birth, part of your driver's licence number, or a sequence of numbers like 1234. We recommend you use different PIN numbers for different cards. Memorise your PIN and keep it secret. Never write it down and never disclose it to anyone. Don't let other people see your PIN when you're keying it into an ATM or EFTPOS terminal.
3. Know who you're dealing with online
Check that the website you order from shows a physical address, phone and fax number. Make a note of all details, including the company's name and Internet address, amounts to be charged, shipping costs, and the time and date you placed the order.
4. Take care on the phone
Never give your PIN over the telephone. Even if the caller claims they're from the bank or the police. Only make telephone transactions when you have instigated the call and are familiar with the company.
5. Keep your card safe when you travel
Don't leave plastic cards and travellers' cheques unattended. Keep them with you and not inside backpacks or suitcases. Keep an eye on your card when paying in shops and restaurants. Use your hotel's safety deposit box if it has one. Check your statement upon returning home.
6. Protect your card with Cardguard
Cardguard is New Zealand's leading credit card registration service. With Cardguard, if your cards are lost or stolen, one simple phone call at any time of the day or night from anywhere in the world will cancel your cards and start the replacement process.
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