Have you been the victim of credit card fraud or do you avoid making purchases online because you worry about security?
I’ve thankfully not been a victim myself but know a few friends that have and although they have all luckily recouped any losses, it can sometimes be long winded and a very stressful process.
I’ve recently come across a fantastic new service that can eliminate the risk of online credit card fraud.
Credit card fraud: the issue
According to Financial Fraud Action UK the losses incurred on UK issued cards in 2016 was £618 million. Nearly double what it was in 2011 showing this problem has been on the rise for some time.
In 2016 70% of fraud relating to cards was via remote purchase. This means card details were obtained illegally and then used to make online purchases before the user knew anything about it!
How are credit card details obtained?
There are a variety of ways that criminals can obtain your card details:
- Unsolicited emails – where an email claims to be from a reputable sender asking you for money for unpaid bills like your tax bill.
- Telephone calls – where the caller claims to be from your bank or utility provider and asks you to provide card details to update your account.
- Digital hacking – where software is used to hack into your computer or online accounts to steal your card details.
Credit card fraud: the solution
Many of you will know that I have been writing and discussing for some time the new wave of ‘internet-only’ banks that have been launched.
For those that don’t know, an internet only bank is a new bank that only operates online, no physical branches. They are aiming to disrupt the traditional banking sector with more innovative products and better customer experiences.
One of these new online banks is Revolut.
Revolut have come up with a genius solution to online credit card fraud by creating disposable virtual cards!
How does a disposable virtual credit card work?
A disposable credit card is only available through the Revolut Premium account which costs £6.99 per month but which also comes with lots of other really cool features.
Once you have set up your Revolut Premium account you go to the cards section of the app, add virtual card and then choose disposal virtual card.
Then every time you make an online purchase with the disposal card, Revolut will destroy the card details and update your app with totally new card details for your next purchase. This will then be repeated every time you make an online purchase with the disposal card.
I think this is a real game changer when it comes to beating credit card fraud and keeping your money safe!
You can find out more about this service from Revolut here.
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Stock market linked investments and any income from them, can fall as well as rise and is not guaranteed. Any figures quoted are for illustrative purposes and should not be taken as a forecast or guarantee. Past performance should not be seen as an indication of future returns and clients may get back less than they have invested.