Welcome to our May newsletter! In this edition; The new Flood Re scheme helping to provide affordable home insurance to thousands of home owners, how to keep your cash protected against card machine fraud, keeping your small business safe from cyber crime and the top ten reasons for new driver bans are revealed! 

Until next time, 

West Craven Insurance

Flood Re is the new scheme launched by the government set to ease the strain of insurance premiums on those living in high risk flood areas.

The scheme, named 'Flood Re', is the result of a partnership between the government and some of the biggest insurance providers in the sector. Customers can buy their home insurance as normal without any extra effort on their part. The extra insurance costs which usually come with claiming home insurance are re-directed to Flood Re, which is funded by a levy on the insurance industry. Customers will continue to buy their home insurance in the same way as before, and all the contact will be directly with their chosen insurer. If a customer needs to make a claim, they should contact their insurance company directly, just as they do now. Flood Re will work ‘behind the scenes’ with the insurance company.

Under previous insurance policies, the excess in the event of a flood could reach up to &2500 in high flood risk areas and if there is a history of flood damage in the area, the excess can reach up to &25,000.
Floods Minister Rory Steward said, "flooding is devastating. Nothing can take away the distress it causes. But affordable flood insurance will help people get back on their feet more quickly and secure their futures. So the government and the insurance industry have worked together to establish Flood Re to provide affordable excesses and premiums for people in flood effected homes. It's great news that Flood Re is now open for business. It is a fantastic step forward - making flood insurance affordable for people regardless of where they live."

What this means for the customer
For those living in a flood risk area their property and possessions are covered by the new scheme and they can make claims on their insurance without incurring the infamous high premiums.
However there are some who are excluded from the benefits of Flood Re. Buildings built in 2010 onward, businesses and buy to rent properties do not receive the benefits on the scheme.
The cost of funding the system is also met by a levy on all home insurance policies - not just those who participate in the scheme. The average home owner can now expect the cost of their home insurance to rise by up to &10.50 annually, even if they do not live in a high risk flood area.

Why is Flood Re necessary? 
In the face of the rising flood risk, we have estimated that 350,000 flood risk UK households would struggle to obtain affordably priced flood insurance without a scheme like Flood Re.
The Government and others agreed with us that the Flood Insurance Statement of Principles established in 2000 had become unsustainable and that a new approach was needed to help flood risk households obtain affordable flood insurance. The Statement was only ever intended to be a temporary measure and restricted customer choice as insurers only had commitments to their existing customers, and new insurers can decide to whom they offer flood insurance.

If you have been struggling to obtain home insurance and would like some help - get in touch with us today!

Every week, 2,500 Britons are made victims of ATM fraud, according to Financial Fraud Action UK.
Card machine fraud is increasingly becoming one of the most common types of fraud. Criminal gangs are tampering with cash machines so that they can clone your card details and drain your bank account.
You’re not even safe when you’re on holiday! The number of cash machines that were tampered with last year rose by a massive 546% last year!
We’re not helpless in the face of this fraud. There are ways of spotting if a ATM has been tampered with, you just need to know what to look for.

1. Check the whole ATM for a false front
It may seem incredibly audacious to replace the whole front of an ATM, but it’s the easiest way to fool people into using them. They can be difficult to detect, but have a good look and you might be able to spot something unusual. Maybe you use it regularly, but overnight it’s changed appearance. Maybe the front looks too big or too small.

2. Check the card slot
This is the most common fraud. Con artists will attach a ‘skimmer’ to the card slot. This device scans your card and steals your details. You can detect these by checking for misaligned or misprinted stickers, or if the card insert slot seems unusually bulky.

3. A loose or blocked card slot 
If the card slot appears to be loose or blocked, this may suggest that there is a ‘Lebanese loop’ inserted in the slot. A ‘Lebanese Loop’ is a tiny device or sleeve which captures your card in the machine.
The ATM will still ask you for your pin, but because it can’t read the card, it will lead you to believe your card has been swallowed. Once you leave the machine, the perpetrator can eject your card and clear out your bank account.

4. Check the pin pad
If it feels loose, thick, or sponge-like, then it may be a fake.
This is one of the oldest methods for stealing your pin. Criminals place a ‘pin-pad overlay’ on the pin-pad. When you enter your pin, it captures it, and in some high tech cases, sends the information via WIFI straight to the gang. All they need to do now is get a hold of your card.

5. Do not be distracted
This is the original method, and one that still works. A fraudster will stand behind you and watch you enter your pin. Once you’re finished at the ATM, they’ll distract you and take your card. These methods include mugging the card owner, whilst others will deploy a cash or card trap on the machine, and the pretend to be attempting to help you, whilst an accomplice will steal your card.

Before using any card machines, check your environment. Is anyone loitering nearby? If there’s a queue, is the person behind you standing too close? Many of these criminals will work as a team, so be aware of groups.
Fico's fraud specialist Brian Kinch said “When taking money out of an ATM, it's important to always stand close to the machine and shield your PIN carefully. Once you have completed the transaction, put your money and card away before leaving the machine.”
“If you spot anything unusual about the machine, or there are signs of tampering, make sure you leave it well alone and report it to the police or your bank immediately so they can investigate.”

Today’s business environment moves at a rapid pace with a growing reliance on technology, social media and the internet to manage costs and maintain market advantage. This brings with it emerging risks that could result in lost revenue, business down time and a host of unforeseen costs and legal liabilities.

According to a recent survey, 74% of small organisations experienced a security breach last year, with the average cost of a breach rising sharply from &75,000 in 2014 to &311,000 last year. The survey also found that nearly 9 in 10 large organisations now suffer some form of security breach – suggesting that these incidents are now a near certainty.

High-profile cyber attacks have been hitting the headlines with increasing frequency over the past year, putting security risks firmly in the spotlight. With celebrities, big businesses and small enterprises all coming under attack, it seems that no one is safe.

- The following are tips for small businesses to take to stave off cyber crime:
- Keep your operating systems updated and regularly patched
- Have a firewall plus software that opposes virus, spyware and phishing attacks
- Keep your browsers updated at all times with the latest version of the software
- Keep all system software updated
- Encrypt your wireless network
- Restrict software and set up administrative rights so that nothing can be installed on company computers without authorization
- Use filtering that controls access to data
- Block access to restricted sites with internet filters to prevent employees and hackers from uploading data to storage clouds
- Remove or disable USB ports so that malicious data can’t be downloaded
- Implement strict password policies
- Encrypt entire drives, folders and files

If businesses do nothing, assuming a ‘nothing can happen to us’ mentality, then it’s only a matter of time before a security hack. Security in any company of any size is ultimately everyone’s responsibility.

 A Freedom of Information request made by Auto Express has revealed the top ten offenses that caused new drivers to lose their license in their first 24 months.

Between June 2010 and May 2014, driving without the correct insurance was the most common reason for newly qualified drivers getting disqualified, with a whopping 21,148 drivers disqualified.

AA President, Edmund King, said that many of these disqualified drivers may have been caught ‘fronting’, a practise where high-risk drivers avoid expensive premiums by appearing as a named driver on someone else’s policy, when they are actually the main driver.

But the Department for Transport argued that fronting is only carried out by an "irresponsible minority", and says the current legislation is keeping the issue in check.

Driving without insurance is an offense which lands new drivers with a fine and six penalty points. During the first two years, six points is enough to automatically revoke a driver’s license. To reobtain your license, you must completely relearn to drive. That will include paying for a provisional licence, lessons, theory test and the special abridged and pricier practical test, designed for those with a disqualified status! That’ll cost you &1309 altogether!)

Whilst not having the correct insurance may not seem like the top contender for most common disqualification, the other top five are stereotypical of new drivers. Offenses such as speeding (7220 banned), failing to provide the correct information on a driver’s identity (2220 banned), using mobile phone whilst driving (1766 banned) and driving without due care and attention (1675 banned).

Top 10 reasons for new driver bans

1. No insurance - between June 2010 and May 2014, a total of 21,148 newly qualified drivers were caught using a vehicle uninsured against third-party risks
2. Speeding - breaking the speed limit on a public road got 7,220 new drivers banned
3. Driver's identity - failing to provide information on a driver's identity accounted for 2,220 bans
4. Vehicle control - some 1,766 bans related to breach of requirements as to control of a car - using a mobile etc.
5. Care and attention - driving without due care and attention brought 1,675 bans
6. Motorway speeding - another 1,249 bans were down to exceeding motorway speed limits
7. Jumping lights - failure to comply with traffic light signals brought about 1,020 bans
8. Defective tyres - some 854 drivers were banned for using a vehicle with defective tyres
9. Insurance offence - different insurance offences accounted for 699 bans
10. Failing to stop - some 665 drivers were banned for not stopping after an accident

Are you a newly qualified driver? Or maybe you’re in the market for a better deal on your car insurance? Contact us today for a quote!