Online banking fraud reaches record high

Online banking fraud reaches record high


Online banking fraud has risen by 185% and losses due to online fraud hit £21.4 million in the first half of the year, according to the payment industry association Apacs.

The increase has been attributed to the development of “phishing” attacks – a new style of scam where hoaxers replicate the websites of well known banks to trick customers into entering their account details. The fraudulent websites now look convincingly sophisticated and it is often difficult to tell a genuine from a fake.


At this time bankers and financial experts are being urged to warn their customers about the danger of these online scams, especially as it’s the victim who may be liable to cover the losses.


Banks are becoming reluctant to refund victims of phishing scams due to the frequency of the claims. Current guidelines specify that only if the customer is negligent or fraudulent then a bank can refuse to return the money, but recently banks have begun to argue that customers who readily give out their details to suspicious websites are guilty of negligence. 


This means that banks can choose whether to reimburse the victims of these scams or not. In these unstable times with banks cutting costs wherever possible and adopting a severe stance with giving out money, it has now become imperative that savers are extra vigilant about protecting their details online.

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