Banks in direct debit fraud alert

CONSUMERS have been urged to check their bank statements after a spate of direct debit fraud cases.

Fraudsters have been obtaining bank details, including sort codes and account numbers, and setting up direct debits for goods such as mobile phones.

Software engineer Geoff Mayo had four separate direct debits for mobile phone services set up on his HSBC current account over the past year without his knowledge.

A total of £400 was withdrawn from the 28-year-old‘s account, although he has been refunded by the bank because of the direct debit guarantee.

He said: ?I just happened to check my account one day and noticed these payments had been taken out that I had no knowledge about. It was a bit of a shock and surprising how easy it is for people to do this.

?The banks obviously aren‘t checking direct debit applications thoroughly enough.‘

The problem has grown since a number of companies stopped asking for a signature when setting up direct debits.

The Association of Payment Clearing Services said this type of fraud was not common but warned bank account holders to check their statements.

HSBC said: ?Customers are protected against direct debit fraud by the direct debit guarantee, but they should always check their statements for any unusual payments.‘