APACS: Number of people banking online increases more than 500 per cent in past seven years

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Thursday, 24, Jul 2008 12:00

Figures released today (24 July 2008) by APACS, the UK payments association, show that the number of adults using online banking has increased by 505% in the past seven years from less than 3.5 million in 2000 to just over 21 million last year.

Online banking is a safe and secure way for consumers to access their bank account, and the chances of becoming a victim of online banking fraud are very low – the industry’s 2007 fraud figures reveal a year-on-year drop of 33% in online banking fraud losses. However, criminals continue to target online banking customers through phishing and spyware scams, because the banks’ own systems have proved difficult to attack. Phishing attacks have become far more frequent this year with the latest APACS data showing more than 20,000 reported phishing incidents in the first half of 2008 – an increase of more than 180 per cent from the same period last year .

APACS has published a Banking Safely Online advice guide to help remind online banking customers of the need to stay vigilant and follow simple safety procedures when banking online. The guide is freely available to download from www.cardwatch.org.uk and www.banksafeonline.org.uk.

The Banking Safely Online guide also includes useful information about the most common types of online scam and how to avoid falling victim to them:

• One easy way to spot a phishing email is that, because fraudsters only have very limited information such as people’s email addresses, phishing emails are usually addressed to ‘Dear valued customer’ rather than to you personally.

• Don’t try and hit back at fraudsters by replying to phishing emails and either deliberately providing bogus information or letting the sender know that you are aware it’s a scam – by doing so you are putting your PC at risk of attack from malicious computer viruses.

• Banks never send emails asking their customers to disclose PINs, login details or complete passwords - most fraud on online bank accounts involves a customer being duped into giving away their passwords and security information.

• Be wary of unsolicited emails offering you the chance to make easy money simply by transferring funds in and out of your online bank account. The funds you receive into your account will probably be fraudulently-obtained, and by passing them on you will be laundering the money, which is illegal.

Sandra Quinn, director of communications at APACS, says:

“Online banking has changed the way we access our bank accounts, and is now second nature to many of us. The fact that the number of people banking online now exceeds 21 million is testament to how easy, convenient and safe this way of banking is.

“In the future we expect more and more people to use online banking to make payments rather than just checking balances, particularly in light of the recent introduction of the new faster payments service. This enables customers to make one-off payments over the internet or by phone within hours, not days.

“However, we strongly urge banking customers to make sure they remain wary of online scams such as unsolicited emails claiming to be from their bank, and to only use a fully protected PC with regularly updated anti-virus software and a firewall installed and switched on.”

E

ENDS

For further information contact the APACS Press Office on 020 7711 6251 / 020 7711 6316 / 020 7711 6340 or press@apacs.org.uk

Notes to editors:

1 APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and online/phone transactions. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses. Further information and advice for consumers and retailers regarding how to avoid being a victim of all types of card fraud is available at www.cardwatch.org.uk.

2 Number of reported phishing incidents* targeted against UK banks and building societies Q1 2006 – Q2 2008

Q1 Q2 Q3 Q4 Total

2006 2,369 2,738 3,967 5,102 14,156

2007 3,394 3,830 8,931 9,642 25,797

2008 10,235 10,447 - - -

* In a single phishing incident, thousands or even million of emails are sent out by fraudsters, typically trying to convince people to click on a link that will send them to a fake website. The criminals’ objective is to fool people into thinking it is a genuine site so they will enter their online banking security information.

3 Online banking fraud losses

In 2007, total losses for online banking fraud were £22.6 million – a decrease of 33% from 2006, when they totalled £33.5 million.

4 Spyware is a type of computer virus that can be installed on your computer without your knowledge. It is capable of monitoring your PC activity, enabling fraudsters to capture your passwords and other personal information. To make sure you don’t become a victim of spyware, make sure you have up-to-date anti-virus and anti-spyware software installed. Seek technical support as soon as possible if your computer starts acting oddly.