UK:Online banking fraud up 71pc despite rise of log-in gadgets
SEP-2014
Banks appear to have lost ground to the criminals after figures showed a 71pc rise in online banking fraud, to £29.3m for the first half of the year.
It comes despite the rollout of more stringent log-in processes, such as issuing customers with "security keys", calculators that generate new passwords each time a customer wants to access their accounts.
Financial Fraud Action UK, an industry body, said fraudsters have been tricking victims into revealing their online banking passwords and personal information through posing on the phone as someone from a bank or building society fraud investigation team.
The telephone scam, called "vishing", allows fraudsters to get around the anti-fraud technology and software banks have in place to try and stamp out fraud.
A spokesman for Financial Fraud Action UK said: "The technology banks have been introducing over the last three years has helped fight against online fraud, but unfortunately criminals are beating the security systems simply through pressuring people to give away their passwords."
As well as cold calls, fraudsters are increasingly using computer viruses to steal personal and financial information, the spokesman added.
The sharp increase will come as blow for banks who are trying to encourage customers to bank online instead of going to a branch.
Barclays last week unveiled biometric technology that can read veins in the fingers of customers, to gain access to online accounts.
Other banks have introduced gadgets to try and prevent online banking fraud. HSBC, for example, introduced a security keypad for its online customers in 2011.
Royal Bank of Scotland and Natwest have card readers for online transactions.
Fraud, more broadly, was also found to be on the rise.
UK credit and debit cards losses were up by 15pc in a year with criminals increasingly targeting online shoppers.
A total of £247.6m card frauds were committed in the first six months of 2014.
Financial Fraud Action UK said e-commerce fraud had risen 23pc year-on-year.
Some of the rise in overall fraud was attributed to the fact more British consumers are shopping online, but Financial Fraud Action said it has seen an increase in deception crimes aimed at individual shoppers and e-commerce businesses. This type of fraud has resulted in £110m worth of losses.
Total losses related to remote card purchases, which also includes purchases made over the phone and mail order, as well as online, stood at £174.5m, also rising 23pc.
Detective Chief Inspector Perry Stokes, head of the Dedicated Cheque and Plastic Crime Unit (DCPU), which targets fraud on behalf of the banking industry, said: "Be very suspicious of phone calls, texts or emails which come out of the blue asking for personal or financial details, regardless of who they claim to represent.
"Be aware of the warning signs: your bank will never ask you for your four-digit PIN, to transfer or withdraw money, or to give your card to a courier."
• Keep important personal documents, plastic cards and chequebooks in a safe and secure place
• Try to memorise passwords and PIN numbers. If you must write them down keep them in a secure place separate from your other financial documents
• Be very cautious of unsolicited emails promising opportunities to make easy money.
• Verify any company that makes you a job offer and check their contact details (address, landline phone number, email address and website) are correct and whether they are registered in the UK.
• Be especially wary of job offers from people or companies overseas as it will be harder for you to find out if they really are legitimate.
• Never give your bank account details to anyone unless you know and trust them.
• Check bank and credit card statements regularly and let your bank know immediately if there are any entries you don't recognise
• If you are expecting a bank or card statement, utility bill or other financial information, contact the supplier if you don’t receive it
• Always speak to the bank securely: Before calling your bank, make sure you can hear the dial tone. Only ever call your bank on an advertised number.
The sharp increase will come as blow for banks who are trying to encourage customers to bank online instead of going to a branch.
Barclays last week unveiled biometric technology that can read veins in the fingers of customers, to gain access to online accounts.
Other banks have introduced gadgets to try and prevent online banking fraud. HSBC, for example, introduced a security keypad for its online customers in 2011.
Royal Bank of Scotland and Natwest have card readers for online transactions.
Fraud, more broadly, was also found to be on the rise.
UK credit and debit cards losses were up by 15pc in a year with criminals increasingly targeting online shoppers.
A total of £247.6m card frauds were committed in the first six months of 2014.
Financial Fraud Action UK said e-commerce fraud had risen 23pc year-on-year.
Some of the rise in overall fraud was attributed to the fact more British consumers are shopping online, but Financial Fraud Action said it has seen an increase in deception crimes aimed at individual shoppers and e-commerce businesses. This type of fraud has resulted in £110m worth of losses.
Total losses related to remote card purchases, which also includes purchases made over the phone and mail order, as well as online, stood at £174.5m, also rising 23pc.
Detective Chief Inspector Perry Stokes, head of the Dedicated Cheque and Plastic Crime Unit (DCPU), which targets fraud on behalf of the banking industry, said: "Be very suspicious of phone calls, texts or emails which come out of the blue asking for personal or financial details, regardless of who they claim to represent.
"Be aware of the warning signs: your bank will never ask you for your four-digit PIN, to transfer or withdraw money, or to give your card to a courier."
Ten top tips for avoiding scams
• Never give your bank account details to someone you don't know• Keep important personal documents, plastic cards and chequebooks in a safe and secure place
• Try to memorise passwords and PIN numbers. If you must write them down keep them in a secure place separate from your other financial documents
• Be very cautious of unsolicited emails promising opportunities to make easy money.
• Verify any company that makes you a job offer and check their contact details (address, landline phone number, email address and website) are correct and whether they are registered in the UK.
• Be especially wary of job offers from people or companies overseas as it will be harder for you to find out if they really are legitimate.
• Never give your bank account details to anyone unless you know and trust them.
• Check bank and credit card statements regularly and let your bank know immediately if there are any entries you don't recognise
• If you are expecting a bank or card statement, utility bill or other financial information, contact the supplier if you don’t receive it
• Always speak to the bank securely: Before calling your bank, make sure you can hear the dial tone. Only ever call your bank on an advertised number.
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