Posted December 19, 2011 by Simon in News

Online Banking Fraud on the Decline


t looks like the security updates to online banking services, coupled with a more ‘savvy’ customer is proving to be a success in reducing fraud, with new figures showing a 32{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} decrease from 2010 to 2011.

A recent survey published by the Financial Fraud Action UK group is indicating that fraud relating to online banking is on the decline, with losses attributed to online banking fraud amounted to £16.9 million for the 6 month period.

This 32{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} drop from 2010 to 2011 continues the trend of declining fraud within online banking as 2009 to 2010 also reduced by 36{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1}.  This is even more impressive, as the number of phishing websites trying to entice users to release their login details has continued to increase.

On the flip side, phone banking fraud hasn’t fared too well, with losses rising by 48{a7f143556510d926cb072b695f3ed49f89b7d13a9d4c359f2399f0d9de0c1da1} to £8.6 million during the January to June 2011 period. As with card fraud, criminals are focusing on the straightforward crime of duping a customer into believing they are dealing with a bank or police representative and getting them to disclose their financial security details login details which the criminal then uses to access the customer’s bank account over the phone.

Jan to Jun 2007
Jan to Jun 2008
Jan to Jun 2009
Jan to Jun 2010
Jan to Jun 2011
£ 7.5m
Phishing Websites

DCI Paul Barnard, Head of the Dedicated Cheque and Plastic Crime Unit (DCPCU), the special police squad which is sponsored by the banking industry and has an ongoing brief to help stamp out organised payment fraud across the UK, said:

“Losses are appreciably lower than they were a few years ago and everyone involved in tackling fraud has reason to be encouraged by this – and that includes bank customers who, as their own front-line of defence, have certainly played their part too.

“However, there has been an increase in old fashioned scams – criminals using distraction techniques and social engineering methods to get hold of people’s cards or phone banking details. We are urging everyone to be on their guard. Your bank or the police will never cold call you or email you and ask you for your login details, cards or PINs. If anyone does, they are probably a criminal, so hang up the phone or delete the email.”