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Preventing online fraud: know the risks

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by Janine Hart

22/12/10 in Cybercrime | Identity Fraud/Theft |

Did you know there is a victim of online fraud every 7 seconds*?

With this in mind, it’s important to know how to stay safe online and to know the potential risks and consequences of online fraud.

Fraudsters are becoming increasingly sophisticated, online fraud can occur in numerous ways; one of the most common ways is through phishing i.e. email scams.  

The prevalence of phishing has been a major factor in the growth of online fraud…

But what is Phishing?

Phishing is where a criminal sends an email pretending to be from your bank, government department or social networking site.  This email will try to gain your personal details so will typically contain a link to what appears to be a legitimate site. If you click on this link the site will prompt you type in your personal information such as account details, policy numbers, passwords and credit card numbers. These can then be used by criminals to commit identity fraud.

There were 51,161** unique phishing attacks in 2009 in the UK – a 16% increase on the 2008 figure.

Remember, you will never be asked to divulge personal information via email from your bank, government or social networking site.  


Bogus Lottery scams

You may receive an email letting you know you have won a big prize in an overseas lottery.  Beware! To get your hands on this prize you will need to send money for admin costs or tax costs before you can claim the prize.  You may also be asked for personal details, which the criminal may use for fraudulent purposes.


What is an ‘advanced fee’ scam?

This type of email scam asks the recipient to help transfer a large sum of money out of a foreign country in return for a share of the money. The only catch is that an ‘advanced fee’ is required. If you send off the ‘advanced fee’, you won’t receive anything in return. Remember, if something feels too good to be true, it usually is!


Avoiding online fraud

According to research by CPP, a victim of online fraud could lose on average £289*

So staying safe online is important, whether you access the web via your mobile or through your PC or laptop.  

Here are CPP’s top tips on avoiding online identity theft:

  • Never open or click on links in suspicious looking emails.  Remember your bank will NEVER email you asking for personal information
     
  • Make sure you have anti-virus software that is up-to-date and ensure any other security software you have is updated regularly
     
  • When shopping online, make sure when paying that the browser is secure, the URL should show: https:// rather than http:// and the site should show a padlock symbol
     
  • Never write down your pin number
     
  • Never share your password or write it down
     
  • Use a different password for different accounts
     
  • Don't reveal middle names or personal details on social networking sites
     
  • Do not use public wi-fi zones or shared computers for internet shopping or banking
     
  • When shopping online, make sure you only use reputable sellers. Look for evidence of a physical address on their website, as well as telephone numbers. Be particularly cautious when buying from overseas companies. (Make sure you pay using a secure online payment system that offers some protection against non-delivery).


How is online fraud evolving?

Remember, keeping up-to-date with the latest scams is key to staying safe online and protecting your identity from fraudsters; make sure you take time to familiarise yourself with changing threats by searching the web or why not subscribe to our news feed for regular advice from the team at CPP?


*CPP Whitepaper, June 2010: UK online fraud
** UK Cards Association, March 2010

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