Online Fraud

More than 33 million people in the UK now regularly use the internet to access their bank accounts or to shop online – with an increasing number of adults (40 per cent) doing both. The internet remains a safe way to carry out banking or shopping transactions as long as a number of common sense precautions are taken.

Shopping online

The incidence of computer hackers stealing and using cardholder data from retailer websites remains low. Similarly, the vast majority of online businesses are honest and legitimate and comply with their obligations to carefully protect and securely dispose of cardholder information. The reality is that most internet card fraud involves a criminal obtaining genuine card details in the real world that are then used to shop online.

Online shopping fraud prevention: top tips

To minimise your chances of becoming a victim of fraud whilst shopping online, you should:

• Be aware that your card details are as valuable as cash in the wrong hands so store your cards securely at all times and try not to let them out of your sight.
• Sign up to Verified by Visa or MasterCard SecureCode whenever you are given the option whilst shopping online. This involves you registering a password with your card company. By signing up, your card will have an additional level of security that will help prevent you being a victim of online fraud. More information on how to sign up can be found at www.shopsafeonline.org.uk.
• Only shop on secure sites. Before submitting card details ensure that the locked padlock or unbroken key symbol is showing in your browser. (The locked padlock symbol is usually found at the top of the screen if you use Internet Explorer 7 or Firefox 2.) The beginning of the online retailer’s internet address will change from ‘http’ to ‘https’ when a connection is secure. In some new browsers, such as Internet Explorer 7 and Firefox 2, the address bar may also turn green to indicate that a site has an additional level of security.
• Never disclose your PIN to anyone and never send it over the internet.
• Print out your order and keep copies of the retailer's terms and conditions, returns policy, delivery conditions, postal address (not a post office box) and phone number (not a mobile number).
• Ensure you are fully aware of any payment commitments you are entering into, including whether you are instructing a single payment or a series of payments.
• Consider using a separate credit card specifically for online transactions.

Banking online

In the UK more than 21.5 million people now bank online. Most fraud on online bank accounts involves a customer being duped into giving away their user passwords and security information via a phishing scam, or by their PC being infected with spyware designed to steal the information.  If you are a victim of online banking fraud you have protection through The Banking Code, which states that you will not be liable for any losses unless you have acted fraudulently or without reasonable care.

The two most common attempted scams currently used by online fraudsters are phishing and malware.

Phishing

This is an e-mail that purports to be from your bank or another service such as PayPal, urging you to click on a link that takes you to a fake website identical to the one you would expect to see. You are then asked to verify your personal security information. If you submit this information you are actually giving it to a fraudster.

Malware

This is a type of virus (malicious software) that can be installed on your computer and run without your knowledge. It is capable of logging your keystrokes thereby capturing your passwords and other personal information. 

Online banking fraud prevention: top tips

To help avoid online scams you should always:

• Be suspicious of emails which are supposedly from your bank.
• Never give your login details in full by email or over the phone – your banks will never request these in this way.
• Make sure your home computer has a security programme and virus protection.
• Make sure your computer has up-to-date anti-virus software and a firewall installed. Consider using anti-spyware software. Download the latest security updates, known as patches, for your browser and for your operating system (e.g. Windows).
• Be wary of unsolicited emails requesting personal financial information. Keep passwords and PINs safe; always be wary of unsolicited emails or calls asking you to disclose any personal details or card numbers. Your bank, building society or the police would never contact you to ask you to disclose your PIN.

As additional preventative measures when banking online you are also encouraged to:

• Ensure your browser is set to the highest level of security notification and monitoring. The safety options are not always activated by default when you install your computer.
• Know who you are dealing with - always access internet banking sites by typing the bank’s address into your web browser. Never go to a website from a link in an email and then enter personal details.
• For further advice visit www.banksafeonline.org.uk.

Fact:

In 2007,  more than 80 per cent (29.8 million) of all internet users in the UK made an online purchase. This is up from 50 per cent of internet users in 2002. In addition to the increase in the number of adults spending online, the number of purchases being made is growing – the average number of purchases made by online shoppers rose from 13.6 in 2004 to 22.9 in 2007.