Moneynet
Warns Consumers May Be Caught Short By ID Theft Protection Products
Released on
= July 14, 2005, 5:55 am
Press Release
Author = Moneynet
Industry = Financial
Press Release
Summary = ID Theft Protection Products Could Lull Consumers Into
False Sense Of Security – And May Not Pay Out, Warns Moneynet
Press Release
Body = 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 ( http://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.
* * * * * *
* * * * * * * * * * * *
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.
http://www.moneynet.co.uk/
Web Site = http://www.moneynet.co.uk/
Contact Details
= 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
Online press
releases distribution by bigmouthmedia
Web: http://www.bigmouthmedia.com
E-mail: rachel@bigmouthmedia.com
Phone: 0845 130 0022
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