'Card-not-present' fraud

19.08.2005 In 2003, ₤109m was lost through "card-not-present" fraud according to Cardwatch, a website sponsored by the Association for Payment Clearing Services (APACS). Card-not-present fraud occurs during transactions in which neither card nor holder is present.

If a card or card number is obtained illegally, then it may be used for transactions in orders by mail, telephone, fax or over the internet. These transactions are possible because the retailer is not physically present at the point of sale, making it impossible for them to check whether the card details belong to the person who is making the transaction, or to somebody impersonating their details.
Fraudsters can obtain card details through a process known as ‘skimming’. With this, a card is swiped through a specially designed machine, which reads and records the card’s details. This can occur at restaurants, petrol stations or other outlets where it is common for a card to be taken away from a customer during the transaction. Unscrupulous employees at legitimate outlets can swipe cards through a skimming machine before returning the card to the customer. A simple way of protecting yourself from this is to make sure you are present during card transactions. 
If you are paying a bill in a restaurant, go with the waiter to the till when they swipe your card. This way, you can be sure that they aren’t taking it away to a skimming machine out of sight. Card details can also be obtained from receipts and statements, so when discarding these, make sure you shred them into small pieces before putting them in the rubbish. If you want to purchase goods or services online, ensure that you only use secure and reputable websites. Sites without an address or telephone number could be dishonourable. If you enter your card details into such sites, they could be used to abuse your account.
Checking your credit card statement each month against receipts, will show you immediately if someone has been using your card details. If you see a transaction has occurred for which you have no recollection or receipt, call your card issuer immediately and report it.
Card fraud is a big concern, but by taking the steps described , you can significantly reduce your chance of becoming a victim.