Cyber crime soars with rise of online banking

As the latest banking industry figures report a leap in the number of UK adults banking and using credit cards online, financial data analyst Moneynet.co.uk warns that fraudsters are becoming ever more determined to perpetrate cyberspace raids on personal finances.

According to the Association of Payment Clearing Services (APACS), credit card fraud alone accounted for £535.2 million in 2007 – the latest figures available.

Criminals also continue to target online banking customers through phishing and spyware scams, reckons APACS.

APACS research shows that although the number of people either deleting or taking no action when receiving a phishing email has increased from 75% in 2006 to 82% last year, there are still nearly one in five people who don't follow these common sense precautions. Also, although 93% of people have anti-virus software on their PC, almost one in three people (29%) don't have any anti-spyware software on their computer.

“Phishing is the curse of our modern age,” says Moneynet.co.uk chief executive Richard Brown.

“Our site users are increasingly reporting more and more sophisticated email phishing scams,” he says.

“One of the more recent ones is the targeting of private car owners attempting to sell their vehicles through Exchange & Mart or AutoTrader – among the most popular mediums for buying and selling cars and vans and motorcycles in the UK .

“Clearly, thousands of potential sellers could be at risk from these clever scams, which appear to work in much the same way as long standing scams aimed at people selling goods on eBay,” says Brown.

“This scam works in much the same way as all classic phisher scams, whereby the criminals ‘brand’ the email so as it looks as if it comes from a genuine source – in this case via E&M’s site.

“This is now pretty much a standard phishing approach and consumers need to be constantly vigilant.

“Along with the phisher emails which plague online traffic, there are many, many other scams.

“Most would appear to be really obvious - such as the Nigerian operated frauds asking people to invest in some operation or other in order to qualify for huge returns – but the fact that official organizations reveal that innocent people daily fall victim to scam artists suggests that the message is not getting through.

“Our 10 point guide to thwarting online scammers will serve to reinforce our message that you should never, ever let your guard down when buying or selling online, and to delete all email traffic from unfamiliar sources. It sounds simple, but a worrying number of people continue to get caught out,” said Brown.

Moneynet.co.uk’s 10 point guide to keeping safe online

Be ultra cautious when using credit cards online. Access payment sites through the official site only. Never click on links. Make sure the websites you use are secure – a security icon should be showing in your browser window.

Get password smart. Choose passwords carefully and do not write them down. Never respond to emails asking you for your passwords.

Close down accounts you do not use anymore. They could be used without your knowledge.

Do your research and always make sure you know who you’re dealing with. Bogus companies, websites and charities will try to persuade you to part with your personal information.

Always have the most up-to-date anti-virus and firewall software installed on your computer. These programs will make it harder for ‘viruses’, ‘trojans’, ‘worms’ and hackers getting your details

Always delete emails from people you don’t know and companies that you have not subscribed to. Never open the attachments as it’s the attachments that are usually infected with viruses.

Keep a record of all your online transactions. Check them against your bank statements – if there are payments that you cannot identify - contact your bank.

Try and reduce the amount of ‘junk’ mail you have by installing an ‘anti-spam’ filter. This will reduce the risk of receiving e-mails infected with ‘spyware’ that allows criminals to access your details.

Pay extra attention when using computers other people can access. Sometimes computers save passwords and account details automatically when they are typed in. Take extra care in libraries and internet cafes.

Make regular checks with your original internet service provider if another service asks for your details. Some bogus services have been known to say that your original provider has already passed on your information in order to gain your account details. Never give out your details.