Is online banking safe?

Banks constantly update their systems to improve security. Citibank recently introduced a screen keyboard to enable customers to log on without letting Trojan programs record their security details.

David Palmer of Citibank said: “Keyboard logging is the internet equivalent of someone looking over your shoulder as you type in your Pin. But with our screen keyboard, customers’ details are protected from this type of fraud.”

Such innovations mean the banks’ systems are generally immune to fraudulent attacks. This is why criminals tend to target customers’ computers instead.

Dave Martin of Logica CMG, an IT consultancy, said: “Fraudsters definitely see customers as the weakest link, so it is important to be vigilant.”

What can I do to protect myself from fraud?

The latest virus-detection programs and firewalls are available over the internet and some can be downloaded for free.

There is no guarantee that these will safeguard your computer from the latest viruses or spam e-mails. However, they offer a level of protection and should persuade your bank you were doing your best to avoid fraud, should this happen.

Jason Clarke of Halifax said: “Hackers rely on holes in the security of your computer. It is therefore essential to install a personal firewall and have an up-to-date anti-virus system.”

Martin recommends the Adaware system. You can get this free as long as you are prepared to check your computer by physically running the program every week or so. Visit adawareinfo.com for more information.

The Windows XP operating system includes a firewall. However, if you do not have this or simply want greater protection, the Zonealarm firewall can also be downloaded free. Just go to zonelabs.com, click on Download & Buy and then Trial Version. The final option is a free version of the firewall suitable for non-business use.

Downloading free Windows Update patches from microsoft.com should also help to plug gaps in your internet security. And discounted software may be available via your bank.

Other tips include: transact only on secure websites that begin “https” or display a padlock icon in the corner of your web browser; avoid obvious passwords such as your name, date of birth or “password”; always check that callers claiming to be from your bank are genuine by asking security questions; and never give your password or account number, whether you are asked for them by post, e-mail or phone.

What should I do if I think I am being targeted by fraudsters?

The first step if you notice any irregular activity on your account is to contact your bank.

Clarke said: “We urge our online customers to check their accounts regularly and report any suspicious transactions immediately.”

However, you may be able to spot fraudulent attacks before money is removed from your account. Missing bills or statements, for example, may mean your contact details have been changed by identity thieves.

Keeping an eye on your credit rating, through a credit-reference agency such as Experian, Callcredit or Equifax, can help you to nip potential frauds in the bud.

Mycallcredit.com offers a service which will alert you to any big changes on your credit file for £39.99 a year. A one-off check costs £7.50.