Online Banking Fraud Rockets

Over recent years many UK banks and financial institutions have made online banking almost irresistible to consumers, offering bonuses and incentives for opening an online bank account, highlighting facts such as being able to conduct your financial transactions both day and night without having to worry about opening times and queues, and making it as convenient and easy as possible for consumers to switch to online banking. As a result many consumers in the UK now combine their regular banking with online facilities, and some have now joined banks that operate exclusively online.


However, despite the convenience and flexibility that UK consumers are able to enjoy through online banking, figures have shown that the levels of online banking fraud have rocketed over the past year. The report comes from APACS, which is the Association for Payment Clearing Services, and the figures relating to online banking fraud are rather alarming.

According to APACS, the first half of the year saw a rise of fifty five percent in online banking fraud, resulting in losses of millions of pounds. The majority of the increases in online banking fraud are thought to be the result of ‘phishing’, which is a process where scam artists send out fraudulent emails or set up fake banking websites in order to obtain consumers’ financial details.

APACS officials went on to state that the scam artists were able to use the information after obtaining it, but in many cases sold the information on to other fraudsters, including log in details, accounts numbers, and passwords. The Association also added that in many cases consumers not vigilant enough when it comes to checking that the site they are using is a secure one, which can be easily determined by ensuring that there is a padlock symbol or by the ‘https’ in the URL bar. 

Anna Lee

Tags: fraud, online banking fraud, banking fraud, banks, Banking