Weak “PIN” Numbers Add Financial Fraud Risk

Kimberly Watson, Editor in Chief
May 31, 2012 /

When creating a “PIN” number, it is usual for most people to base it on birthdays, or repeating, sequential numbers. A recent report from “PULSE” in the UK shows that this type of coding does contribute to Financial Fraud, particularly when related to cards. The report further discloses that out of eleven wallets, one of them could contain cards, with easily revealed “PINS”.

During 2011, PULSE was responsible for the processing of over 3.8 billion debit transactions, a 16% increase from the year before. The usage of debit cards continues to grow, a preferred method of payment. This has created a situation, in which awareness of potential Financial Fraud by way of cards should always be maintained.

A recommendation in the report is that financial institutions combat financial fraud by the blacklisting of easily deciphered “PIN” numbers. Their actions at present seem to be confined to “fraud mitigation”. As this month is “ATM & Debit Card Safety Awareness Month, it would be a highly advantageous time to change easily accessible “PINS” and introduce further deterrents to prevent Financial Fraud.

 

Another report by Javelin Strategy & Research reveals that out of twenty American adults, one has experienced a card transaction that was not authorized, in the past twelve months.

Various experts recommend the daily monitoring of financial statements, in order that any suspicious activity is detected immediately. The changing of statements from postal delivery to online access, or mailing them to secured boxes, is another means of preventing Financial Fraud. The protection of your “PIN” number can be created by ensuring the security of your purse or wallet. Add to this by avoiding, carrying on your person any private information; for example, you social security number. Make a note mental note not to write it down, or share it with any unknown person.

The observance of some simple security habits could help prevent you being a victim of serious Financial Fraud!

 

Share your opinion