Upsurge in banking fraud as criminals switch tactics

Instances of such 'identity takeover fraud' have increased by 75% in the last year, according to the fraud prevention service, CIFAS. Online banking fraud rose from £22.6m in 2007 to £52.5m last year, with total fraud losses on UK debit and credit cards jumping by 14% to £609m in 2008.

'Cardholder not present' transactions, where purchases are made online, by phone or mail order using a credit or debit card, but without having to provide a PIN number, increased by 13% to £328m.

Criminals gain access to bank and credit card accounts by sending unsolicited emails, which are sometimes disguised as news items or invitations to purchase tickets for concerts or sports events, to lure victims to fake websites.

In other instances, fraudulent emails are made to look as though they are genuine communications from your bank, inviting you to click on what looks like the bank's website.

On opening the email or clicking on the website address, your computer can be infected with malicious software which tracks your keystrokes and the websites you visit.

I receive four or five of these emails a day. People should just ignore them as your bank will never email you to input your personal details online. Nor will your bank ever phone you asking for passwords.

Victims are often unaware that their financial details have been compromised until their bank or credit card company alerts them to a change in password (by the fraudster) or the theft of money from their account.

The number of malware programmes detected last year soared by more than 400%, compared with 2007. The good news is that most fraud victims are reimbursed, providing they have acted with reasonable care and not acted fraudulently.

Experts urge computer users to regularly update their anti-virus, anti-spyware and firewalls to minimise the risk of being attacked.

That said, terrestrial fraud continues apace. Theft arising from lost or stolen cards used abroad by criminals in countries such as the US, which don't have 'chip and pin,' has risen the fastest over the last five years.

If a fraudster uses your credit card before it is reported as lost or stolen, you will be liable for the first £50 of losses.

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For more information on keeping safe onine, visit:
getsafeonline.org