Compliance Institute's CEO, Michael Kavanagh article edited by Gabrielle Monaghan featured in the Irish Independent both online and in print coverage yesterday.
In this article, Michael answered 3 consumer questions on a payment scam, auto renewal insurance and the use of public WiFi for making online payments.
Online Coverage:
Irish Independent - Your Questions Answered: ‘A holiday platform had me pay via bank transfer. Have I been scammed?’
Your Questions Answered: ‘A holiday platform had me pay via bank transfer. Have I been scammed?’
Q I always book my summer holidays at this time of year. Recently, when I was browsing the accommodation platform I always use, I spotted a villa I liked and booked it, selecting the “pay later” option.
But later that evening, I got an email from the platform saying they were having issues with their payment gateway and asking me to click a link to complete my payment.
I followed the instructions, entered my bank account details, and paid through my banking app. After a few days had passed without receiving any payment confirmation from them, I called the accommodation platform. And they said they’ve no record of my booking or payment. Have I been scammed?
Caroline, Galway City
A It sounds like you’ve been the victim of an authorised push payment scam, a type of fraud that’s on the rise.
This involves a fraudster impersonating a trusted business and tricking their customers into sending money from their bank account into the fraudster’s account.
You probably used a copycat website rather than the genuine accommodation platform that you’ve been using for years. Copycat holiday websites can look almost identical to the legitimate sites, but they’re set up by fraudsters.
Contact your bank immediately and tell them that you suspect you’re the victim of a fraud.
Unfortunately, as you have paid by direct bank transfer, it could prove difficult to get your money back – but your bank will let you know either way. You should also report the incident to your local garda station.
In future, if anyone asks you to divert a payment, you should always question it and ring the business directly and check that you have the correct payment details.
Always avoid transferring money directly from your bank account when paying for something. Remember, if you use secure payment methods, such as a credit card, you may be able to get your money back through a chargeback.
A chargeback allows you to dispute a credit card payment in certain circumstances, including fraud or where the supplier did not deliver goods or services you paid for.
However, you usually only have a certain amount of time to request a chargeback, so if you do fall victim to payment fraud, contact your card provider immediately and give them details of the fraudulent transaction.
How can I stop a travel insurer auto-renewing cover I don’t need?
Q I bought annual travel insurance a few years ago and it has automatically renewed since – but I don’t always need the cover as I don’t go abroad every year.
I’ve heard that under rules being rolled out by the Central Bank, travel insurance will no longer be automatically renewed unless the consumer gives their consent in advance. Is that correct?
Éamon, Co Carlow
A That’s correct. New rules on auto-renewal fall under the Central Bank’s revised Consumer Protection Code (CPC), which comes into effect on March 24.
Under the updated code, consumers will no longer have policies for travel insurance, gadget insurance, dental insurance or pet insurance automatically renewed unless they’ve given their explicit consent in advance.
This measure is being introduced to reduce the risk of consumers paying for products they no longer need or that aren’t suitable for them, and to give consumers a greater opportunity to shop around and find the most suitable or cheapest product.
However, the new opt-in rules around automatic renewals will not apply to all types of insurance, such as health insurance, home insurance or car insurance. That’s because consumers of these products could be at a substantial disadvantage if they don’t renew their policy on time and their policies lapse as a result.
It’s important to note that the current rules, whereby consumers must opt out of automatic renewals for travel, gadget, dental or pet insurance, apply until March 23.
So if you have any relevant product falling for renewal before March 24 and don’t wish to renew, contact your insurance provider and request to be opted out of auto-renew.
Is it safe to Revolut money to my children using public wifi?
Q My teenage children regularly contact when I’m out and about, asking me to Revolut them money or to buy them something online. Is it safe to do so on public wifi?
Caitríona, Co Roscommon
A Your home internet network is generally more secure than public wifi.
If you’re connected to public wifi instead of mobile data, such as at a café, airport or hotel, avoid making payments, using a banking app, or accessing sensitive financial or personal information.
While it might seem convenient, you’re more vulnerable to scams and your confidential data could fall into the wrong hands. Be especially wary of a password-free public network.