JOINT MEDIA RELEASE

POLICE AND FINANCIAL INSTITUTIONS
WARN OF CARD SKIMMING

Issued Wednesday 24 November 2004

NSW Police, financial institutions and Crime Stoppers have joined forces to launch a national advertising campaign to warn consumers about the risk of card skimming in the lead-up to Christmas.

Skimming is the unauthorised copying of information stored on the magnetic strip of a credit card.
This information is used to create a ‘cloned’ card, which is then used for fraudulent transactions in retail outlets or on the  internet. The stolen details can also be used for identity theft.

To build awareness of this crime, financial institutions, NSW Police and Crime Stoppers have worked together to produce a national print, radio and television advertising campaign which provides consumers with useful tips on how to protect themselves and to encourage reporting of this crime to Crime Stoppers.

Launching the campaign in Sydney this morning, all participants in the campaign agree that education and communication are key weapons in this fight by ensuring that everyone is aware so that this type of fraud can be minimised.

NSW Police Minister John Watkins welcomed the announcement of the campaign ahead of the holiday season – which was prime time for credit card skimmers.

“In the lead-up to Christmas and the holiday sales, shoppers need to be especially aware of this new high-tech crime,” Mr Watkins said.

“Consumers should keep a close eye on their credit cards – it is only necessary for retailers to swipe a card in one machine,” he said.

“And it's vital to check your monthly credit card and statements carefully – and report any irregularities to the bank as soon as possible.”

Mr Watkins commended NSW Police, Crime Stoppers, financial institutions and the Australian Bankers' Association on the new public awareness initiative.

“Credit card skimming is a new criminal technology, so it’s important that members of the public are alert to the risks and armed with strategies to protect their money,” he said.

“The NSW Police Fraud Squad continues to work hard to combat this form of fraud. In the past two years, they've achieved some outstanding results.”

NSW Police Fraud Squad Commander, Detective Acting Superintendent Colin Dyson said criminals used a small device, about the size of a pager or mobile phone, to capture information from a card’s magnetic strip. That information is saved onto a memory chip and accessed to create an illegal copy of the card. The illegal device is usually stored near the legitimate card pad at the retail counter and looks similar to the legitimate device.

Consumers could take simple precautions to protect themselves against card skimming.

“You should treat your card like it is cash and make sure you never lose sight of it. If possible, don’t give your card to a waiter or shop assistant and let them walk out of your sight. If you intend destroying receipts and other personal information material which link your name to specific account number information, ensure they are completely destroyed, so they cannot be retrieved,” Det A/Supt Dyson said.

“Under no circumstances provide anyone with your credit card PIN, especially over the phone.  Only provide personal information when you are sure you know who you are talking to and there is good reason to provide it.”

David Bell, Chief Executive of the Australian Bankers’ Association (ABA), said: “It’s also important to be vigilant in checking your card statements. Always report any unauthorised or suspicious transactions billed to your card and contact your financial institution immediately. Early detection helps banks and police effectively investigate card fraud.”

Det A/Supt Dyson said the large number of shoppers in stores at Christmas time means retailers also have to be vigilant to ensure they are not victims of card fraud.

“All retailers have mechanisms in place to protect themselves against card fraud. They should stick by those procedures, even if they are very busy with Christmas crowds,” A/Supt Dyson said.

“Retailers should always check the signature of the person using a credit card. They should also carefully read the details on the card and check the person’s general appearance – and gender – matches the details on the card.

“In the lead-up to Christmas, retailers should be wary of large, last-minute purchases and customers who appear nervous or suspicious or don’t examine the goods as you would expect.”

Det A/Supt Dyson said criminals who engaged in card fraud often targeted mail-order and phone-order retailers. He said all retailers should train their staff on the best ways to detect card fraud.

Most card skimming happens at retail outlets, however, there was an incident at a bank ATM in Bondi Junction in July.

“Criminals had attached a card skimming device to the outside of the ATM. A sharp-eyed customer noticed something unusual and contacted the bank,” Det A/Supt Dyson said.

“We urge people who notice something out of the ordinary to contact their financial institution, police or Crime Stoppers on 1800 333 000,” Det A/Supt Dyson said.

Financial institutions and police recommend consumers always be careful to shield their PIN number when they are using an ATM. Use a free hand to cover the key pad while you enter you PIN.

Mr Bell said the banking industry is pleased that the law has been tightened in relation to skimming and Internet banking fraud offences committed by criminals.

“The banking industry is pleased that the Federal Government has recently legislated to criminalise credit card skimming and phishing – where criminals use emails to trick people into divulging confidential banking details.”

“The law makes skimmers illegal if prosecution can prove the criminal possessed it for unlawful purposes. It also criminalises dishonestly obtaining or dealing in personal financial information without the consent of the person to whom the information relates,” Mr Bell said.

Information about card skimming activities can be reported nationwide, 24 hours a day to Crime Stoppers.

Chairman of Crime Stoppers NSW and Director of Crime Stoppers Australia, Mr Peter Price, said Crime Stoppers facilitates the reporting of crime information to police anywhere in Australia on freecall 1800 333 000.

“We also facilitate consumer education through crime prevention education techniques.

“Callers to Crime Stoppers may remain anonymous if they require,” Mr Price said.

For further information:

Police Media Unit:
Hudson Bawden or Joanne Elliott
NSW Police Media
Phone: 02 8263 6100
Website: www.police.nsw.gov.au

Police Minister John Watkins
Michelle Stone
Phone: 0400 280 467

Australian Bankers’ Association Public Relations
Heather Wellard
ABA Public Relations 
Phone: 02 8298 0411
Mobile: 0409 830 439

NB: Please see Crime Stoppers fact sheets which list security tips on how consumers and businesses take steps to prevent card skimming.

 
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Issued by NSW Police Media Unit (02) 8263 6100
(Ref:hb/meddocs/medstrat/2004/november/cardskimming/launch)


Visit Australian Bankers’ Association website: www.bankers.asn.au
Visit NSW Police website at www.police.nsw.gov.au
Ph: (02) 8263 6100    FAX: (02) 8263 6312
Level 14, 201 Elizabeth Street, Sydney NSW 2000