1 in 5 victims of ID fraud lose out permanently

One in five victims of identity fraud either receive only partial reimbursement, or nothing at all, according to a Which? survey.

According to the Which? survey, one in four people in Britain has been a target of identity fraud. The research shows that while most victims of identity fraud get their money back, in many cases, the banks are unwilling to help. The reason for this is that banks do not have to reimburse victims if they can prove that they acted fraudulently or without reasonable care, which might include writing down or disclosing your personal identification number (PIN).

However, since a fraudster can discover and use someone’s PIN by looking over their shoulder at a cashpoint before stealing their credit card or debit card, Which? is calling on the Financial Services Authority (FSA) to provide more detailed guidance on the evidence banks have to give in card fraud cases.

ID fraud victim Iain Richardson had more than £2,000 stolen within 20 minutes of having his debit card stolen, but Natwest turned down his fraud claim because his PIN was used to withdraw the cash. It said he must have been negligent, and when he appealed to the Financial Ombudsman Service (FOS) it also turned down his case. Similarly, a judge recently ruled against a Halifax customer who wanted compensation for money taken from his account, because his PIN number had been used.

Martyn Hocking, Editor, Which?, said:

“Identity fraud is inconvenient and stressful, and can also be costly if you’re unable to recover your losses. Fraudsters can be extremely clever and may need just a few details to access your accounts, but you can significantly reduce the risk of fraud if you’re vigilant. Most of us know that we shouldn’t write down our Pin, but we should also shred bank statements, be cautious about the passwords we use and think twice before posting personal details online.”