EXPERTS have warned about the dangers of online banking after a security breach at Cahoot, the internet bank owned by Abbey, writes Clare Francis.

Professor Neil Bennett, a specialist in computer criminology, said: “I don’t bank online and you won’t find many people in information technology who do, because it is relatively easy to hack into a bank account.”

SecureTest, a company that tests the security of online businesses, claims that hackers can get access to personal information within minutes. Ken Munro, managing director of Secure Test, said: “Many people could get access to sensitive information if they spent five minutes online reading up on ‘input validation’, which allows you to gain access to a secure area. If a systems upgrade is poorly managed — as was the case with Cahoot — people can even stumble on information by accident.”

Last Thursday, Cahoot was forced to close down its site for 10 hours in order to carry out urgent repairs after a change to its systems meant that online banking customers could potentially view other people’s account details. However, the bank insists that there was never any risk to the money in the accounts.

Consumers who bank online are frequently targeted by fraudsters, often using a method called “phishing”. Fraudsters send bogus e-mails purporting to be official bank requests, and ask customers to confirm their online banking details either by e-mail or by directing them to a website that looks just like the bank’s authentic site.

Last week Messagelabs, an anti-virus company, warned of a new type of phishing e-mail that puts recipients at risk if they simply open the message. A command is then released that attempts to change files on your computer. The next time you try to log on to your account, you are automatically directed to a fraudulent website, enabling your log-in details to be stolen.

If you bank online, make sure you have an anti-virus system installed and that you update it when you are sent a message prompt.

You must also have a firewall. Windows XP already includes a firewall, or you can download one free from zonelabs.com.