11 July 2005
Credit card customers are being warned to be wary against the risk of identity theft, in spite of new services that appear to protect against it.
Moneynet has warned that many of these policies do not offer full financial compensation to victims of fraud.
The company's chief executive Richard Brown, said: "Few, if any, of these [protection services] 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.
"And if consumers are going to take out cover, they should also be aware that the cost of protection can vary considerably."
The website also pointed out points out that as the credit card industry migrates completely to chip and pin services, card firms can reject fraud claims on the grounds that card holders have not kept their pin number secure.
Mr Brown added: "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."
Which is the right credit card for? Find out now by comparing cards with uSwitch.com's free and impartial comparison service.
© 2008 Adfero Ltd
Content for the uSwitch.com market news service is provided by a third party, Adfero Ltd. Whilst uSwitch.com makes reasonable efforts to check the reliability of this content, uSwitch.com does not guarantee the accuracy thereof or endorse the views or opinions given by Adfero Ltd, unless expressly stated otherwise.