Almost 16 million people check their finances online without any problems, but internet users are being advised to stay vigilant after being targeted by a surge in hoax e-mails, spyware and malicious activity.

Online fraud has cost banks and building societies £22 million in the past six months, a 55 per cent rise, according to figures released last week by Apacs, the UK payment association.

The bulk of online fraud is now attributed to the phishing e-mails that appear to be from your bank and ask you to confirm your details, usually via a link to a website. This website will be controlled by criminals who use the details you submit to transfer money or make payments from your account. Over the past six months the number of websites sending out these e-mails has jumped 1,471 per cent.

Neil Munroe, of Equifax, the credit reference agency, says: “Phishing scams are becoming sophisticated and it is costeffective for the criminals. I receive these e-mails as frequently as once a week and they are becoming very cleverly designed.”

Banks are also encouraging customers to download anti-virus software and firewall software to protect their computers against spyware and “Trojan horse” programmes, which can be downloaded accidentally. Once on your computer the malicious programmes can monitor your activity on the web and record your banking details.

Robin Amlot, of Money- extra, the price comparison website, says: “Anyone accessing the internet now without a firewall needs their head examined.”

Card fraud still costs the high street banks five times more than fraud online, but there has been a 5 per cent fall in the past six months. Mark Buwerman, of Apacs, says: “The success of chip-and-PIN has closed up holes in potential card fraud and criminals could be looking elsewhere. These phishing scams are an easy way for criminals to commit fraud electronically and there are still serious numbers of people falling for them.”

As criminals step up their attacks electronically, a survey by Apacs last month found that computer users were still complacent when it came to online security. Less than half of those surveyed updated their antivirus software regularly and 4 per cent, an estimated half a million people, admitted that they would respond to a phishing-style e-mail requesting their banking details.

Sandra Quinn, of Apacs, says: “People still are not doing all that they should to protect themselves. It is a genuine concern that so many people are still not aware of security advice.”

The high street banks have been warning customers never to respond to phishing e-mails and have been offering software to help people to protect themselves from spyware. However, the banks have still been criticised for not doing all they can to keep their customers’ data secure.

Last month Heise Security found problems with the websites of a number of banks, which could allow “spoof” pages to be inserted into the bank’s legitimate site. According to Heise, it meant that users might think they are inputting their personal details into the bank’s login screen when, in fact, the page is only mimicking the look of the bank’s website.

The banks in question all claim to have addressed the glitches and most are now considering, or have already introduced, measures to strengthen security to their websites to better protect their customers.

Safety first

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