Who Will Steal Your Online Money?

You'll find the best financial deals on the Web, but it's vital to guard your online accounts from cyber-criminals. Here's how to protect your computer.

Although the Internet is a terrifically useful tool to help us manage our finances, it's also a thieves' den for thousands of online scams and frauds.

Indeed, according to a survey commissioned by the Get Safe Online campaign (whose sponsors include BT, eBay, HM Government, HSBC and Microsoft), more Brits fear Internet crime than they do burglary. The survey found more than a fifth of us (21%) felt most at risk from online crime, compared to a sixth (16%) who worried most about being burgled.

Sadly, some people are so concerned about these threats that they are afraid to use the Web to access their current accounts -- or even to shop online for bargains. Sadly, it's true that an unprotected personal computer is a magnet for viruses, Trojans, spyware, adware, phishing scams, spam (junk email) and other malicious attacks.

To get you to sit up and take notice, here are three frightening facts about online crime:

1. Six out of seven targeted attacks (86%) are aimed at home-computer users.

2. In the first six months of this year, almost 7,000 new viruses attacked Windows-based PCs.

3. Less than one in twenty emails (5%) is a genuine message; the remainder are spam, viruses and error messages.

However, by taking some simple steps to protect yourself against cyber-crime, you can enjoy all of the benefits of online money management without worrying unduly about hackers and other scammers. Here are the immediate precautions which you should take:

Install anti-virus protection

Get Safe Online found that one in six users (17%) didn't have anti-virus (AV) software installed on their PCs. Frankly, without a decent AV package, your PC will come under attack as soon as you connect to the Internet and, in no time at all, it will become a haven for harmful programs!

Although you can buy commercial AV software from the likes of McAfee and Symantec, there are a number of free packages available, such as AVG Anti-Virus from Grisoft (which I use) and Avast. You'll find a list of the most popular free AV tools here. Once you've installed this software, download the latest updates and keep up to date; for example, I check for new updates every single day.

Get a firewall

A firewall acts as a barrier between your computer and the rest of the Internet, preventing hackers and automated programs from hijacking your computer, and blocking harmful outgoing traffic from viruses. Although a firewall should be your first line of defence, two in nine PCs (22%) don't have one installed, leaving them at the mercy of cyber-crime!

Again, you can buy a commercial firewall package or use a free version, such as Zone Alarm, Kerio and so on. Here's a list of the most popular firewalls from Download.com, and you can test the effectiveness of your firewall here.

Install anti-spyware software

The worst spyware can be as annoying as viruses, as these unwanted programs can alter your PC settings, scan your hard drive to steal sensitive information (including credit-card details), cause pop-up adverts to appear, hijack your Internet browser, and download further programs to your PC. In addition, a PC laden with spyware will run slowly and crash frequently, making it almost impossible to use. Top anti-spyware software (all free) include Ad-Aware, SpywareBlaster, Spybot Search & Destroy (I use all three) and Spyware Doctor, all of which you'll find here.

Don't open suspicious-looking emails

When I check my Inbox each day, I always find yet more spam inviting me to enlarge one part of my body, shrink another, view adult images and so on. Other messages inform me that I've won a lottery which I've never entered, or offer me millions for my help with spiriting money out of one developing country or another.

Of course, this spam is all rubbish, so I don't bother opening it, because even opening suspect emails can be harmful if they have hidden code embedded in them. Instead, I use a spam filter which automatically weeds it all out for me. You can learn more about dealing with spam here.

Keep your Windows and Office applications updated

Users of Microsoft Windows and associated applications are particularly open to attacks from harmful, Internet-based software, so it's vital to keep these programs up to date. You'll find the latest patches at the Windows Update and Office Update websites, and you can create settings to automatically download and install updates as they become available.

For more information on safer surfing, visit the excellent Get Safe Online website, which offers a wealth of plain-English advice on protecting yourself, your PC, your money and your business from cyber-criminals.

Finally, if you connect to the Web via a wireless network connection (wi-fi), make sure that you haven't left the door open to other wi-fi users. If one of my neighbours had paid attention to this advice, he wouldn't have several local users freeloading on his completely unprotected wi-fi connection. He needs a WAP (Wireless Application Protocol) around the head with a MAC (Message Authentication Code)!

More: Use the Fool to find terrific online current accounts, personal loans and savings accounts!