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Online bank fraud costs UK £60m as malware merchants hit pay-dirt

Criminals harvesting more and more cash from web banking users...
Written by Nick Heath, Contributor

Criminals harvesting more and more cash from web banking users...

Online banking fraud cost the UK nearly £60m last year after a sharp rise in the number of criminals using malware to harvest people's bank details.

Losses from online banking fraud rose 14 per cent in 2009 year-on-year to reach a total of £59.7m, according to the trade body for the payment cards industry, the UK Cards Association.

online banking fraud

Online banking fraud is on the rise
(Photo credit: Shutterstock)

The association attributed the bulk of the rise to an increase in the number of criminals infecting online bankers' PCs with malware capable of gathering a person's online banking details, thus allowing fraudsters to steal money from their account.

Losses from card fraud fell in 2009 to £440m, a decrease of £170m year-on-year, while card-not-present fraud - where stolen card details are used to buy goods over the phone or internet - accounted for £266m of the losses, down from £328m in 2008.

Phone banking fraud losses - mostly involving money transfers using stolen security details - totalled £12.1m.

Cheque fraud losses also fell to £29.8m in 2009, down from £41.9m in 2008, with the majority of attempted cheque frauds getting stopped before the cheques were paid.

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