More and more people are managing their finances online, with over 26 million people in the UK doing so. Younger people aged 25-34 are most likely to manage their money online, with over 75% doing so. About half of all UK adults now bank online. However, 1 in 10 people avoid online banking due to security fears. The document outlines various online banking fraud risks like phishing, malware, and money mules. It provides tips for safely banking online such as only using official apps/websites, password protecting devices, checking statements for unusual activity, and knowing your rights in cases of fraud.

1. More and more people are managing their money online, with 26.8 million
of us now turning to computers and smart devices to look after our finances.
Over 75%
manage
their
money
online
of 25 - 34 year olds
About 50%
of all adults
But 1 in 10 say they avoid it due to
fears around security.
Did you know?
Currently, 356 million transactions are made on
mobile phones each year.
Annual losses and online attacks
60
300
50
250
40
200
30
150
20
100
10
50
2007
2008
2009
2010
2011
2012
Losses from online banking fraud
Number of phishing attacks
The different types of scams and threats:
Phishing
Phishing is the name given to emails sent at random which pretend
to be from genuine organisations, such as your bank.
These try to trick recipients into disclosing sensitive information, like
passwords or bank details.
Malware/Trojans
Malicious software or ‘malware’ is a computer virus which can be
installed on your computer without your knowledge.
A common type of malware is called a ‘Trojan’, which can steal
private information from your computer.
Money mules
Some fraudsters transfer stolen money overseas by using ‘money
mules’ or ‘money transfer agents’. These are often ordinary people
who have been tricked into thinking it’s a legitimate job which offers
an easy way to make money.
When banking on your mobile or smart device:
Only use official apps/websites
Download from official stores
Password protect your phone
Make sure the app you
download or the website you
use is official, and has been
published by your bank.
Only download apps from
official stores.
E.g. iTunes, Google Play,
Blackberry App World.
In case it’s lost or stolen, make
sure you have a PIN or
password set up to lock your
phone as well.
Keep updated
Reset to factory default
Write down your IMEI
Your bank may issue updates
for their apps. Make sure these
are installed and that you’re
using the current version.
If you’re selling your phone,
restore the factory settings so
that any sensitve data is
deleted from the handset.
Your unique 15-digit number will
identify your device to your
provider, and is usually found in
your battery compartment.
Safeguard your PIN
Check your statements
Shred sensitive documents
Never share your PIN number,
even with family members. And
don’t keep it written down,
especially near your card.
Look through your statements
regularly and tell your bank
immediately if you spot
anything unusual.
Never bin personal documents
without destroying them first.
You never know who might get
their hands on them.
Check URL’s of web addresses
Don’t disclose your details
Only shop on secure websites
The URL of your bank’s website
should start with “https”. Try
typing the address in yourself
instead of clicking on links.
Your bank or the police will
never phone or email to ask
you for your PIN, nor will they
come to collect your card.
Don’t buy from just anywhere.
Look for a locked padlock or
unbroken key symbol in your
browser’s address bar.
Tips for staying safe:
Know your rights!
As long as you have not acted fraudulently or without “reasonable care”, your bank
should reimburse you if somebody else has used, stolen or cloned your card.
However, you may have to pay a maximum of £50 if any funds were lost before you
reported your card as lost or stolen.
If you think you’ve been a victim of fraud, tell your bank immediately!
Sources:
BBC, Advice Guide, Bank Safe Online, The UK Card
Association, Telegraph, Action Fraud