Online banking fraud gets sophisticated

A colleague recently received an e-mail from an interested recruiter, with an attractive job offer. A fantastic salary, generous holiday allowance and the promise of accelerated career development. A few things aroused our suspicion however, most notably the dreadful spelling and grammar in the e-mail, coupled with the fact that the company didn't actually seem to exist.

The job description was equally odd: to accept the wiring of ‘client payments' through my friend's personal account before transferring onwards as part of the company's ‘normal business operations'.

Evolving threat

Internet fraud is an increasingly sophisticated phenomenon and the threat posed to online banking customers is continually evolving. The best way to tackle these threats is to ensure you are always aware of the ways in which fraudsters may try to target you.

Phishing is a process used by fraudsters to obtain sensitive information such as passwords, internet banking logons and credit card details by pretending to be an e-mail or message from a trustworthy organisation, for example a bank.

However, a bank will never ask for confidential information such as your password or memorable information via an e-mail.

A 419 scam (advance fee fraud) is an attempt to steal money from people based on the premise that a person will gain extra money if they advance a small amount. The 419 scam is usually sent by e-mail and may seem quite realistic. However, if it is seems too good to be true, it usually is. Remember to always think twice, especially if it's the third time that month that you have "won the lottery!"

Online card fraud can occur if you provide your bank card details to untrustworthy websites after which fraudsters use these details for their own gain.

Whilst online banking is now regarded as a convenient, reliable and a safe way to manage your accounts, it also raises the need for added security and it is crucial to ensure that your bank uses the highest industry standard encryption to protect your confidential account information. Some banks, including Lloyds TSB, have introduced the chip and pin functionality on credit and debit cards, providing customers with a more secure way to pay and also improving protection against card-related fraud.

Prudence is paramount

There are also a number of steps that you can take to stay safe and we have some useful tips to help you protect yourself against fraud:

1. Your bank should never contact you to ask for your personal information — if you get an e-mail or a phone call asking for this information, a fraudster is at work.

2. Do not write down, e-mail or store your account details.

3. Do not write down your Password and Memorable Information.

4. Check the last time you logged on to your online account every time you log on — if looks odd, someone else may have accessed your accounts.

5. Check that the website is secure — Secure internet pages will (usually) feature a padlock in the bottom right hand corner of your screen.

6. Check the site certificate - sites that are serious about security always show a valid site certificate.

7. Avoid using internet banking on publicly accessible computers. Internet cafes are not always secure and sometimes these computers save personal information without your knowledge.

8. Choose a strong password for internet banking and change it regularly — select a 6 to 15 character password that uses a mix letters and numbers that you can remember without writing it down.

9. Always log off. This closes your connection with our internet banking service.

 The writer is Head of Personal Banking for Lloyds TSB Middle East. Opinion expressed here are his own.