The banking fraternity is warning internet banking customers of a new surge in online fraud. Bank customers are being targeted by online fraudsters, hoping to benefit from the recent mayhem in the global financial markets. Phishing attacks are on the increase as users are asked to log into a bogus version of a genuine website and unwittingly divulge personal information to cyber criminals - data which is then sold on and used to extract money from bank accounts or to commit other personal identity scams.
APACS, the UK payments association has recently warned customers to be extra-vigilant and, according to an article published in The Times, say that customers with Lloyds TSB, HBOS or Barclays bank accounts are most at risk.
One such hoax, in light of the proposed merger between Lloyds TSB and HBOS, told customers of Lloyds TSB to confirm their online banking details as part of a stringent security check, and added - “failure to do so may result in temporary account suspension.”
Online fraudsters are using current trends and situations to make their emails appear more reliable and genuine - an APACS spokesperson said: “The organised criminal gangs behind phishing attacks have begun to focus on bank mergers and the economic down-turn as the reason for asking people to disclose their security details. As ever, our advice is that your bank would never contact you in this way and ask you for your PINs, login details or passwords. If you receive an e-mail of this nature you should simply delete it.”
Similar phishing attacks have been seen in the US - banking customers of Washington Mutual and Chase Manhattan were asked to confirm their online account details. The US Federal Trade Commission warned online customers that fraudsters could pose as new owners of merged financial institutions or even appear to be representatives of government agencies tasked with overseeing weakening companies; the market is so unstable at the moment, nervous customers could be hoodwinked.
APACS recently announced a 186% increase in phishing incidents for the first half of 2008 (compared to the same period last year), accounting for £20.7m of losses in the UK. The British Bankers' Association rule that they will only compensate for losses from online bank accounts if the customer has current anti-virus and fire-wall software installed on their PC. Not only that, but banks are arguing that customers are negligent if they divulge their personal details to a bogus website and therefore will not be responsible for losses.
The APACS website contains useful information on how to avoid becoming a victim of online fraud.
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