Moneynet Warns Consumers May Be Caught Short By ID Theft Protection Products

Bank account and credit card holders are being advised not to be lulled into a false sense of security just because they have signed up with a provider’s fraud protection policy.

With the growing threat of ID theft in the shape of bank account and credit card cloning, lenders, card companies and credit reference agencies increasingly offer customers a range of anti-id theft services.

But online financial data analysis company Moneynet (www.moneynet.co.uk) today warns that many of these policies are flawed in that they do not offer full financial compensation to victims of fraud – and urges credit card and account holders to take simple measures to protect themselves against the rising problem of id theft.

“We have seen a number of providers – and even credit reference agencies such as Experian – marketing protection services in recent months,” said Moneynet chief executive Richard Brown.

“Yet few, if any, of these services appear to offer insurance protection against actual financial loss in the event that a credit card company, for example, refuses to cover the loss – and surely this is what consumers really need,” he said.

“And if consumers are going to take out cover, they should also be aware that the cost of protection can vary considerably,” he added.

“Royal Bank of Scotland’s service, while very comprehensive, will cost its customers more than £80 a year, while Barclaycard charges less than half that for a similar level of cover. However, the full terms and conditions of the credit card should also be taken into account and the id protection products should not be considered in isolation.

“Some people may feel they can go a long way to protecting themselves by taking practical steps to protect against identity fraud: basics include buying a paper shredder, keeping a close eye on statements, checking your credit report, keeping passwords and PIN secure, and not giving out personal information over the phone, web or by post unless the recipient is known and trusted.

“While ID protection services may have a degree of value, they shouldn't be used as a reason to take an otherwise uncompetitive product,” warned Brown.

And as the credit card industry moves over to the Chip and Pin system, Brown also voiced concerns that card firms will deny fraud claims on the basis that card holders have not kept their Pin number secure.

“Fraud is clearly a growing thorn in the side for consumers. It is clearly important that people feel their personal financial details are secure, but they should be aware that, even though they have a protection policy in place, they may still face financial headaches while negotiating with their lender or credit card company to have their losses reimbursed,” said Brown.


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Editor's notes:

Moneynet.co.uk is the UK’s most established personal finance research and data website. The company offers consumers a wide range of low cost financial products: from mortgages and personal loans; to car, home and medical insurance; credit cards; savings accounts and best-buy fixed rate products. Moneynet.co.uk is an ethical, impartial and comprehensive source of consumer finance information, covering the whole of the personal finance sector.

Moneynet was founded in 1997 by Chief Executive Richard Brown to simplify the personal finance market and provide consumers with impartial and interactive information on financial products and services.


Press enquiries:

Moneynet, Richard Brown, Chief Executive, 020 8313 9030

E-mail: info@moneynet.co.uk

Web: http://www.moneynet.co.uk/


Alternatively contact:

David Andrews Media Ltd, David Andrews, 01273 774109
E-mail: david@davidandrewsmedia.co.uk

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