Online banking fraud falls

Nearly half of all surfers in the UK now bank online despite an explosion in the number of phishing scams this year.

Figures released from the Association for Payment Clearing Services (Apacs) show that while the chances of becoming a victim of online banking fraud are very low, the number of phishing attacks has risen by more than 180 per cent.

Online banking fraud losses for 2007 totalled £22.6m, down from £33.5m in 2006, a 33 per cent decrease.

Despite the drop in fraud losses, phishing attacks have increased significantly. Apacs' latest data shows that there have been more than 20,000 reported phishing incidents this year.

To combat online banking fraud 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 free to download from www.cardwatch.org.uk and www.banksafeonline.org.uk.

The number of surfers who bank online has increased by more than 500 per cent over the last seven years, as it offers a secure and flexible way to access accounts and pay bills, said Apacs.

Sandra Quinn, director of communications at Apacs, said: "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."

www.apacs.org.uk