Having been ripped off by a Nigerian scammer (details here) we asked our local MP Elfyn Llwyd (Plaid Cymru) if there was anything he could do to help.

He was as outraged as we were that the issuing bank knew of the fraud two months before coming to HSBC and demanding that $800 be removed from the fotoLibra account, by which time of course we had disbursed the money. He said he would write to the Chairman of HSBC.

Which he did. He received a reply from David Lewis, Head of HSBC Customer Relations, absolving the bank of any responsibility and arguing that it was fotoLibra’s fault for accepting ‘cardholder not present’ transactions. This amazing statement ignores the fact that 10.7% of all retail sales* are now made via the internet, every one of which is a ‘cardholder not present’ transaction.

Mr. Lewis concluded

There are some steps the merchant/retailer can take to minimise the possibility of fraud, for example asking for the numbers in the post code of the card holder and only delivering to that address (as fraudsters often ask for the goods to be sent to another address other than that of the registered cardholder).

That might have been relevant if fotoLibra delivered boxed goods to physical locations. But we don’t. We permit the download of digital images to an email address. There’s no connection to any part of the credit card.

Maybe a credit card could be linked to a fixed email address which would form part of the verification process? No, that’s probably far too simple. Isn’t it?

We are most grateful to Mr Llwyd for his concern and his response. That’s exactly what MPs are for. Full marks.

*Office for National Statistics, February 2012