According to a recent Thinking Money report, increases in UK credit card fraud rates are changing the way credit card companies market their products to consumers.
From 2007 to 2008, credit card fraud rose in the UK by 17%, equivalent to an extra Ј170 million in fraudulent transactions (as reported by APACS- the UK’s Payment Association).
This increase has largely been attributed to the credit crunch. Historically, petty crime rates have always risen during a recession. It seems that white-collar crime rates are now following a similar pattern.
The public are becoming increasingly wary of such fraud, thanks to numerous reports in the media. They are reacting accordingly by changing their behavior, arming themselves with household shredders and asking for more protection from their credit card issuers.
In response, credit card companies have started placing a greater marketing emphasis on soft factors like fraud prevention, innovation, customer service and clear terms and conditions, rather than just competitive interest rates.
More than ever, consumers are calling for best practice credit card protection and its provision is becoming a unique selling point for market leaders and early adopters.
Examples of best practice credit card fraud advice:
* Always sign your credit card as soon as you receive it from your issuer.
* Never let your card out of your sight. Never “leave it behind the bar.”
* Never let a waiter or waitress walk away with your card. Ask them to bring you a Chip and PIN terminal or walk with them if necessary.
* Keep you credit cards and credit card cheques in a safe place.
* Shred all of your credit card receipts, statements and any other documents containing your personal information or financial affairs before disposing of them in general household waste.
* Destroy (preferably shred) all of your old credit cards and cheques when you receive new ones.
* This information has been sourced from the websites of MBNA Credit Card and Ireland’s MBNA Credit Card. Check MBNA’s credit card fraud advice page for more practical information on fraud prevention.
With no end to the credit crunch in sight, we will doubtless see increasing numbers of financial companies marketing their fraud prevention assets. Other soft factors like core business values, year of establishment and strength of balance sheets might also begin to feature more prominently in the credit card marketing mix.
David Swan
david.u.swan@gmail.com
http://www.thinkingmoney.org
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
