UK Online banking fraud up 8000%

The UK has seen an 8,000% increase in fake internet banking scams in the past two years, the government's financial watchdog has warned.

The Financial Services Authority (FSA) stated it was 'very concerned' about the sophistication and prevalence of phishing attacks. Between January and June of 2005, the number of reported phishing attacks in the UK was 312; the figure for the same period this year was 5,059.

It's estimated that a total of £46m will be stolen in the UK through such scams in 2006 alone. Philip Robinson, the FSA's head of financial crime, was quick to point out that online banking is generally 'safe', but that it was important banks were 'transparent and open' about security breaches to keep customer confidence high.

News source: BBC News

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Here's a thought - how about the banks get together and spend £46m on an advertising campaign making users aware of fake internet banking scams and how to identify them. This could save them lost of money.

The principle of banking is to try as much as possible to never spend a penny on a customer, let alone £46 million. If a scam happens - they'll just blame the client.
Having said that, a lot of banks offer free security nagware like McAfee for free, so that's at least something, but then again, it might be just a backup plan for them if a scammed customer demands money from the bank.

Although I do agree with you, that instead of stupid ads like Halifax puts up recently (with their customer service team rapping away about their 'extras') they should put up an ad like you said.

[/quote] It's estimated that a total of £46m will be stolen in the UK through such scams in 2006 alone.[/quote]

does that mean it hasnt been stolen yet?

The year 2006 is not finished, so thats why they estimate how muh there will be stolen.
Maybe £44m is stolen, the remaining will be stolen here in chirstmas...

Whats really dense is that Abbey have started sending out legitimate emails with links to Credit Card eBanking in which IMHO is one of the dumbest things ever. They should standardise that across all banks, email is never used to provide links to secure facilities, Abbey are just going to confuse people and possibly make the situation worse. Whats even worse is that Abbey's Credit Card facilities are located at because its a generic server run for multiple companies that use MBNA, I had to read through their entire certificate before being convinced it was real.

The Simple thing to remember about internet banking is if you are unsure about an email you have recived,
DO NOT click on the URL with in that email.

Open your webbrowser and type in the Address your bank Gave you!

How hard is it to follow simple instructions from your bank? IMO the people who ignore the banks advice are
jsut asking for trouble.

There's a lot in the media about phishing scams, but I've never, ever had a letter from my bank about them, and there's nothing on the statements.

How hard would that be? "HSBC Plc will never send you an email regarding your account. Discard any such emails. Contact customer services on 0800 blah blah if you are in doubt about the authenticity of communications from HSBC Plc".

It's not great, but it'd be better than nothing?

NatWest have been doing this for ages. When you login into online banking if theres a big scam going on they warn you about, and give a 24hr emergency contact number if you've been stupid enough to respond.

Quote - lunamonkey said @ #1

BBC, FYI they are real scams :p

The statement is correct. read it like this "Fake Internet Banking" Scams
There are tons of fake internet banking sites springing up everywhere and these collectively are called scams.

Lunamonkey is correct: the term "fake" used with the term "scam" is essentially a double negative. These schemes are Internet Banking Scams, period.

Scam websites are "fake", not the scams themselves, which are very much real.