October 08, 2009

Online banking fraud in the United Kingdom jumped by 55 percent during the first six months of this year as criminals become even more sophisticated in their use of technology.Losses from online banking fraud hit 39 million pounds (US$62 million) in the first half of the year, despite a decrease in the overall amount of credit card fraud in the United Kingdom.Banking industry body Financial Fraud Action UK warned that online fraud is becoming increasingly sophisticated, with fraudsters targeting customers using malware and phishing scams.

The number of phishing incidents rose by 26 percent to 26,000 during the same six-month period from January to June, according to the group.But it also said online security measures, which require the cardholder to enter a password when making purchases over the Web, have contributed to an 18 percent reduction in the amount of phone, Internet and mail order fraud.