Losses from this type of financial fraud are growing faster than any other scam. Find out how to protect yourself.
The latest figures from Financial Fraud Action UK have brought some good news. Certain types of banking frauds are occuring less often. For example, total losses from card fraud were down an encouraging 23%.
Counterfeit fraud such as skimming and cloning cards also fell by a massive 48%, while phone, internet and mail order fraud dropped 18%.
Online banking fraud is up
But there's also one piece of very bad news. Online banking fraud is up a colossal 55%, with total losses reaching £39 million in the first six months of this year.
Why is this type of fraud getting so much worse? Are UK banks more careless with customer accounts than we would like to think?
Well, according to Financial Fraud Action UK, the banks' systems have actually proved pretty resistant to attacks from fraudsters. Instead criminals are targeting weaknesses in customers' own PCs with increasingly sophisticated techniques such as spyware.
Spyware
Spyware scams encourage you to open email attachments which claim to be sent from a bona fide source. But if you fall into trap by opening the attachment, you'll have unwittingly unleashed a Trojan virus. The virus can actually log your keystrokes enabling it to steal all sorts of information such as passwords and personal data which is then automatically sent out to a remote server. This information can be used fraudulently or sold on, where it can easily result in identity theft.
Phishing
Phishing scams are also on the rise. Phishing involves fraudsters sending you hoax emails in a bid to extract your bank details from you. Some phishing emails tell elaborate tales which invariably promise generous quantities of cash in return for your help (and your current account details), while others are simply disguised as an email from your bank.
In the six months from January to June this year there were 26,000 more phishing incidents than over the same period in 2008. This represents a worrying increase of 26%.
How can you protect yourself?
Don't panic. There's no need for any sleepless nights. It's certainly a huge concern that online banking fraud is climbing, especially when the figures for many other types of fraud are improving. But there are plenty of ways you can protect yourself.
Because bank systems are more difficult to attack, fraudsters are more likely to target you directly through phishing scams or infecting your PC with spyware. So here's how you can to protect your personal data:
10 ways to protect yourself from phishing and spyware scams
Here are ten things you should always do to avoid falling for a phishing or spyware scam:
- Always treat emails sent to you from your bank as suspicious, even if they appear legitimate.
- Your bank will never ask for your login details or personal financial data by email. If you're asked for them, that's a huge sign something phishy is going on.
- Never open an email attachment from someone you don't know.
- Treat every attachment you receive with caution. Even if you know who sent the email, if it's unexpected don't open it. Their PC could have been taken over without their knowledge.
- Scam emails often ask you to click a link which takes you through to a fake website. This may look very similar to your bank's own website, but don't be fooled. When you do any transaction online make sure it's safe by checking the URL in the address bar says 'https' and not just 'http'. (The 's' stands for secure.)
- Delete suspicious emails immediately.
- If you think you may have received a scam email, report it to reports@banksafeonline.org.uk.
- Make sure your PC has a good security programme including a firewall and install up-to-date anti-virus software.
- Always make sure you download the latest security updates for your system.
- Check your current account regularly for any suspicious activity. Alert your bank immediately if you come across anything which you think might be a fraudulent transaction. You should check your credit report regularly to protect yourself from identity theft. You can get a free Experian credit report now.
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