The three biggest online threats

A cyber-crime syndicate with a network of 13million virus-infected computers was busted by Spanish police this week - the biggest so-called `botnet' yet uncovered. Yet the threat doesn't end there - we uncover and explain the three most-common frauds circulating online.

The scale of the threat posed by online fraud has been underlined this month following the arrest of a Spanish crime syndicate accused of masterminding one of the biggest computer crimes ever seen. The three men under investigation allegedly ran a network of nearly 12.7 million zombie computers - a so-called ‘botnet’ - all infected by a virus geared towards stealing online login credentials for banks, credit card accounts and email services.

The ‘Mariposa’ virus they were said to have unleashed spread through shared online networks and security flaws in Microsoft’s Internet Explorer web browser. The architects apparently made their money by selling details of infected computers and compromised accounts to other crooks, as well as serving pop-up ads for bogus shopping websites.

The terrifying scale of the operation was underlined by software firm Panda Security. A spokesperson told IT website The Register: “Our analysis indicates that the botmasters did not have advanced hacking skills. This proves how sophisticated and effective malware distribution software has become, empowering relatively unskilled cyber criminals to inflict major financial loss."  

Scary stuff - yet, astonishingly, no-one in the UK has ever been convicted of internet fraud by UK authorities. The international nature of the crime makes it hard to secure convictions. In response, the Government set up a new ‘cyber enforcement team’ in February as part of a £4.3m investment over three years to tackle internet and e-mail cons.

The National Fraud Authority estimates that the annual cost of online fraud in the UK is £30bn - that’s £621 for each adult. But what are the most common and lethal scams? And how do you spot them?

1: Spyware

The ‘mariposa’ virus was geared to send dangerous software to personal and business computers. Typically, these ‘spyware’ or ‘Trojan’ viruses install unwanted software on your PC that secretly monitors your activity by tracking your keystrokes, scans for private information or gives outsiders control of your PC.

The aim of the virus is to capture your financial passwords to facilitate fraudulent activity. They are typically distributed through downloads of seemingly harmless free software, via pop-up adverts for bogus websites and sham security products or, more frighteningly, over unsecured internet connections through exploiting flaws in online browsers.

There are a number of ways to protect yourself. First, never download attachments from emails or websites unless you’re certain they come from a safe source. Check that your internet connection is password-protected and ensure that you’re using the most up-to-date version of your internet browser (and regularly install updates if need be). 

Finally, and most important of all, it pays to install anti-virus and firewall software on your PC. You can buy complete suites from providers like McAfee and Symantec but there’s also software available for free - you can currently get a free trial of Zone Alarm’s award-winning firewall software while for PC users Microsoft’s free Security Essentials suite provides full anti-virus protection, as well as malware detection and removal. 

2: Spam emails

Unwanted or fraudulent emails - most commonly known as ‘spam’ - are a growth industry. Figures issued in February as part of the OFT’s ‘scams awareness month’ show that 73% of UK adults have received a scam email in the past year - and over half of those who responded were asked to hand over money.

The volume of spam is also growing - figures from security firm Symantec found that last month the number of bogus emails increased by 5.5% from January to account for 89.4% of all emails sent. Fortunately, in many instances, these emails are fairly easy to spot - typical offers are for pharmaceuticals or crude money-making schemes, and are badly-written with crude mis-spellings (e.g. ‘p0rn’ for porn) designed to catch-out spam filters.

Yet a small minority can look convincing - so how do you protect yourself? First of all, use common sense - if any offer looks too good to be true, it probably is. Second, make full use of spam filters - webmail clients like Hotmail and Googlemail have these built-in, but if you use a separate mail client like Outlook, it can pay to install an up-to-date filter. Finally, never click on any links contained within or download any attachments.

It can also pay to keep your personal email private and set-up a separate email account for online shopping and site registration. To check your account has never been compromised, it’s worth looking at your credit report – you can see your file for free with our Credit Expert trial.

3: ‘Phishing’

This last online fraud sees criminals engage in identity theft by leading users to bogus websites designed to look like those of their bank in the hope that they will disclose private information such as user names or passwords. Once they seize your details, the criminals use the information to apply for loans or credit cards in your name - or in more crude operations, simply siphon funds from your account.

This fraud is typically distributed through spam emails, although more sophisticated outlets are manipulating search engines to ensnare users. In most instances, you will receive an email purporting to be from your bank alerting you to a ‘problem’ and asking for details to fix it. Never respond - your bank will never ask you for security details via email.

It pays to keep your details as secure online as you would in the real world - so don’t put data such as your date of birth or home address in the public domain on social networking sites.

To check the providence of any website - particularly banking ones - you should also check that it has an approved security certificate. This is typically highlighted by a padlock in the bottom-right corner of your browser (top-left for Apple users). Newer browsers also automatically alert you to secure websites - so, again, keep your browser up-to-date.

To ensure your account hasn’t been compromised, see your credit report for free with our free trial. You can also make sure your PC is up-to-scratch with our guide to free security software and keep on top of all your accounts at all times with our simple online banking tool.