Fraud protection policies misleading
Consumers who spend money on fraud protection plans could be wasting their money, reveals a new report.
Instead, customers are advised to use the traditional safeguards of being vigilant and storing their pin number safely, rather than relying on ID theft protection services.
Moneynet advises that a large number of these policies do not actually offer financial compensation to victims of fraud and warns that with the new chip and pin system, insurers could argue that victims did not take proper care of their pin number.
"Few, if any, of these [protection services] services appear to offer insurance protection against actual financial loss in the event that a credit card company, for example, refuses to cover the loss - and surely this is what consumers really need," said Moneynet chief executive, Richard Brown.
"And if consumers are going to take out cover, they should also be aware that the cost of protection can vary considerably," he added.
Mr Brown gave consumers some tips for avoiding identity fraud, which include buying a paper shredder, keeping a close eye on statements, checking credit reports, and not giving out personal information over the phone, web or by post unless the recipient is known and trusted.
He explained that fraud was a growing problem, suggesting that customers should shop around to find a protection policy that is right for them. | 
