Early Warning System for Credit Cards?

Credit card fraud is increasingly worse as the years go by.  The fraudsters are finding ways around the new technology being created either because they are in on the ground floor of the creation or they are spending the money they have made in the past on fraud to gain control of the situation.  It seems that no method for protecting against credit card fraud is foolproof.  Knowing this doesn’t help the 65,000 Britons who have been victims of ID fraud in 2007 nor will it help the current victims of 2008.  However, there is something being released that might offer a helping hand.  Many lenders and insurers are offering an ID theft alert product to help set your mind at ease.

But, is this a really valuable product?  The alerts are not ID theft assistance in which you use to get your life back on track after an incident.  Instead these alerts are to prevent, monitor, and stop the credit card fraud from ever occurring.  They are supposed to alert you when changes have occurred or when applications have been placed in your name, address, and other personal details.

The alerts will be working in conjunction with Equifax, Experian, and Call Credit.  They are to keep track of your personal financial records.  It is an add on service that will have a variety of prices depending on the level you are willing to purchase.  The prices are definitely high.  The annual fee for the protective registration is 14 pounds which will give a warning flag on your address.  So if someone tries to use your address for credit then you will be alerted.  However this will create delays for you as well as the companies will have to verify you.  Another thing to consider is that if the fraudster has your address this is virtually useless as they can just give your address and personal details to verify that they are you.

For insurance you can pay 60 pounds a year and get protection for 50,000 pounds.  This would cover legal fees and phone calls associated with the credit card fraud that must happen after the fact.  It also helps you insure documents like your passport details so that they are registered and protected against the fraud.

The ID alerts are offered by the credit reporting agencies to use on credit cards and other possible accounts that could be opened.  The point is to have these alerts so that you are not responsible for the loss.  The only thing that could affect this is if negligence can be proven, but most companies are not going to try and prove negligence on your part or take you to a court proceeding to try and verify this.

Some of the credit card companies to make it more enticing to get their cards are even offering free alerts for their consumers.  Capital One is just one of the credit cards offering this benefit so that you don’t have to worry about card fraud.

Credit Card Updates June 2008

5 Savings Tips for Credit Cards
Before Taking on a Credit Card
Card Protection System Foiled
Debt and Credit Cards
Early Warning System for Credit Cards?
Credit Card Identity Theft Tips
Photo Identification on Credit Cards
Refunding Money: Credit Cards
Saving Money When You Have a Credit Card
Saving the Planet with Credit Cards