10th March 2010
UK consumers lost £59.7m through online banking fraud in 2009 -
a 14% rise on the previous year - according to research.
New figures released today by the UK Cards Association showed
that although total fraud losses on UK cards fell by 28% between
2008 and 2009 to £440.3m, a decrease of £170m, more and more Brits
are falling victim to online fraud attacks.
The association, which represents UK credit and debit card
providers including banks, blamed the rise in online banking fraud
on increasingly sophisticated methods used by criminals to target
online banking customers through malicious software, or malware
that can 'steal' details such as passwords from PCs.
There were also 51,000 reported phishing incidents in 2009 - a
rise of 16% on the previous year. This is where customers are sent
emails purporting to be from their bank that trick the recipient
into disclosing their security details to criminals.
Criminals also netted £12.1m through phone banking fraud. Most
losses involved customers being duped into disclosing security
details through cold calling or fake emails.
David Cooper, Chairman of the Fraud Control Steering Group, the
payment industry's leading fraud prevention group, said: "Although
online banking fraud losses have shown a year-on-year increase,
card fraud remains a main focus of criminal activity.
"However, the industry remains committed to containing and
reducing all areas of fraud. To this end, we will continue our
partnership approach - working with law enforcement, retailers,
consumers and the Home Office - to tackle fraud head-on."
Melanie Johnson, Chair of The UK Cards Association, said:
"The cards industry sees fighting fraud as a key part of keeping
its customers' interests centre-stage. We are committed to a wide
range of measures to ensure customers feel confident, safe and
secure when they use their credit and debit cards - whether in a
shop, abroad, online, at a cash machine or anywhere else.
"And a fall in card fraud is good news for everyone - UK
consumers, retailers and the industry. We recognise that cards will
always be targeted by criminals, so we are determined not only to
continue to prevent, detect and deter those who are behind this
type of crime, but also to make sure that innocent victims don't
lose out."
Claims Financial