Many will be thinking: if a leading government agency can lose the personal details of up to 25 million people in the post, what chance do I have of protecting myself against fraud?
According to the Association for Payment Clearing Services (Apacs), plastic fraud on UK-issued cards rose by 26% in the first half of the year, while card fraud committed overseas shot up by 126%.
Apacs says it expects shoppers to spend £50bn or more online this Christmas, meaning these figures are only likely to rise unless we're careful about how we use our cards.
Just as banks and building societies are urging customers to be vigilant in light of the data crisis, consumers should be constantly aware of the threat of online fraud when they use a card online and take measures to negate this risk.
The first step should be to use a credit card for all purchases, rather than a debit card.
A debit card is of course linked to a bank account, so if your details did fall into the wrong hands you could quickly see your savings disappear. In addition, there is no legal protection if you use a debit card to make purchases online.
This contrasts with credit cards, which are covered by section 75 of the Consumer Credit Act. This means that when you buy something for more than £100 and less than £30,000 using a credit card, you enter into a contract with both the trader and issuer - meaning you could make claims against either if necessary.
However, some credit cards are safer than others.
While you should generally shop around for the best rate you can find by using our credit card comparison tool it's also worth thinking about the levels of ID protection on offer. Below I have highlighted three cards that offer particularly comprehensive protection as well as enticing rates or offers:
- Egg Card - Actually the first credit card to offer an internet fraud guarantee and with 0% on balance transfers for up to 14 months and 0% on purchases until 1 February next year, this is a competitive deal with a typical APR of 16.9% and a 3% handling fee.
- Capital One Cashback Card - Offering 4% cash back on all purchases for the first three months (and 1% thereafter) this is a timely Christmas money saver with an internet fraud guarantee and free ID theft assistance. Typical APR is 14.9%.
- Sony Card - One reward point for every £1 spent, or three for every £1 spent buying a Sony product. You can redeem the points against a wide variety of Sony items. For example, if you spend £250 you can use the reward points to claim a 2GB Sony MP3 player. The card offers 0% on balance transfers for 12 months, with a 3% handling fee, and 0% on purchases for 3 months. Typical APR is 15.9%.
The protection is there and nothing should stop you capitalising on the incredible savings to be made online by comparison to the high street.
However, as an added money-saving tip this Christmas, my advice is to not just compare internet sellers to the high street stores - but to compare the online traders against each other too.
At moneysupermarket.com we have a shopping channel in which you can compare the prices on numerous consumer products ranging from books, music and DVDs to electrical goods, clothing, sports equipment, toys and more.
So instead of simply heading to one website because you know it is cheaper than the shops close to your home, you can actually compare the prices available online in seconds - and secure the cheapest deal on all your presents this Christmas.
By shopping safely and smartly you can ensure that no-one is disappointed over the festive season while saving yourself some cash.
DISCLAIMER: Please note that any rates or deals mentioned in this article applied at the time of writing and may no longer be available/applicable today.
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