Online banking fraud is increasing at a startling rate, as criminals move their efforts away from plastic and onto the internet.
According to banking group the UK Card Association, the amount of money lost to fraud on the internet increased by 14 per cent during 2009. Meanwhile, plastic fraud dropped significantly.
So-called 'phishing' attacks, in which individuals are tricked into giving their details to fraudsters, increased by 16 per cent between 2008 and 2009. The attacks often take the form of emails or attachments asking people to reset their online banking passwords.
Attacks are also rife around tax deadlines, when fraudsters send out emails claiming to be from HMRC and offering a tax refund.
Small firms are at particular risk of online fraud, as many have relatively lax security arrangements and may be unaware of the acute risk posed by phishing attacks. Any suspicious correspondence should be forwarded to the relevant bank or organisation for clarification.
