Cutting your costs, fighting your corner
EMBARGOED FOR 00:01 30 MARCH 2017
Bank customers who've cancelled a lost or stolen contactless card may no longer have to check months or even years of statements for signs of fraud,in a key victory for MoneySavingExpert's six-month campaign on the contactless card security flaw.
Regulator the Financial Conduct Authority (FCA) has now promisedParliament that it will clamp down on post-cancellation contactless card fraud, and has outlined a package of measures it is considering to help victims.
Steve Nowottny, news and features editor at MoneySavingExpert.com, said: “It’s welcome news that the FCA is finally taking action to tackle this shocking security flaw, six months after MoneySavingExpert.com’s investigation revealed the scale of the problem.”
“If a credit card is lost or stolen and you cancel it, you’d normally assume it can no longer be used. Most card-holders would be gobsmacked to hear they’re still at risk of contactless fraud months after cancellation - and the policy we found some banks had of automatically debiting your account after a cancelled card is used, and not checking whether you made a purchase, is hard to justify.”
“The regulator’s right to warn this is a public confidence issue as well – with contactless cards now commonplace, it’s vital that consumers can trust that they are secure. We now need to see what practical measures the FCA, debit and credit card providers put in place to close this loophole – but today’s announcement is a step in the right direction.”
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About MoneySavingExpert.com: MoneySavingExpert.com is dedicated to cutting consumers’ bills and fighting their corner. The free-to-use consumer finance help resource aims to show people how to save money on anything and everything, and campaigns for financial justice. Set up in 2003 for just £100, its free-to-use, ethical stance quickly made it the UK’s biggest independent money website, according to internet ranking site Alexa.com, and the number one ‘Business and Finance – Business Information’ site, according to Hitwise. It has more than 12 million people opted-in to receive the weekly Martin’s Money Tips email, and more than 15 million unique monthly site users who visit more than 26 million times a month. In September 2012, it joined the MoneySupermarket.com Group PLC.