How to avoid online fraud
London
25.02.10
According to a recent survey, the British are the worst in Europe when it comes to online security. Most people in the UK are very conscious of the risk to their homes, cars and workplaces from theft or vandalism, but have little awareness of the similar risks to their online assets. This disparity leaves thousands of UK consumers at risk from identity theft by cyber criminals.
The internet has given rise to a new wave of identity theft. Identity theft is where a criminal steals the personal information of their victim, such as their name, address or bank account number. Those details are then used to pose as the victim and fraudulently obtain credit, or access the victim’s bank account or existing credit cards. This was much more difficult before the internet became widely used. Now, with the greater ease technology has brought to retail and banking, stealing someone’s identity and then their money or credit has never been easier.
Criminal gangs operating internationally send out millions of emails per day posing as genuine retailers or lenders such as Ebay or HSBC. Consumers reading these emails are often fooled into believing that they are genuine requests for information from their bank or a retailer they have an account with, and readily email back with their details. This information is then used to steal from consumers. This kind of crime costs the UK economy alone £1.7 billion per year according to recent Home Office statistics.
Despite this very real and quickly growing threat, UK consumers have been slow to react to the dangers of internet retail and banking. A study conducted in 2009 by PC Tools showed that one in three UK consumers never updates their security software. In France, only one in 14 consumers is guilty of this, and in Germany, as few as one in 20. 10% of Brits have no anti-virus software installed on their computers at all.
It doesn’t stop with anti-virus software either. Installing various software packages can be confusing and lengthy, which might dissuade some web users from doing so, but other, simpler forms of protection are also lacking in UK consumers. For example, only 1% of UK PC users delete files they receive from unknown senders, whether they are sent via email, instant messenger or social networking sites. With 25 million phishing emails sent worldwide every day, this leaves hundreds of thousands of consumers vulnerable to fraud and viruses. Similarly, almost 40% of UK consumers use the same password for all of the secure sites they visit, meaning that if their password falls into the wrong hands, all of their accounts can be accessed fraudulently. This is similar to having the same key for your car, front door, windows, safe and workplace; if that key was stolen, a thief could steal from all of those locations.
To make matters worse, many consumers do not even realise they have been stolen from for some time after the crime has been committed. PC Tools’ study found that 20% of victims only found out they had been affected by identity crime online once a financial services provider contacts them about an irregular bill. Even more people go even longer without realising that they have been a victim of cyber crime, only finding out when they are refused from credit because an identity thief has taken out large loans or credit cards in their name without their knowledge.
Staying safe online is something that UK consumers are slowly waking up to, and there are things that they can do to protect themselves from identity theft. To start with, it is advisable to install anti-virus software and regularly update it. Staff at PC stores can advise on the cheapest, simplest and most effective software available. Next, it is important to choose passwords that are not obvious to anyone but the individual using them, and to use different passwords for each secure site, changing them regularly. Consumers should also avoid opening emails from senders they do not know, and be vigilant with emails that appear to be from genuine lenders or retailers. Most retailers or lenders will never ask consumers to fill in their details over an email, so if an email asks this, it should be deleted. If in doubt, consumers can always call the lender or retailer in question and ask for confirmation that an email is genuine.
Finally, credit reports, which are available from websites such as HighCreditScore.co.uk, are also an important part of staying safe online. A credit report shows a consumer’s borrowing history, and gives them a credit rating, which denotes the suitability of lending to them. Consumers who regularly check their credit reports will be able to spot any suspicious loans or credit taken out in their name that they do not remember, meaning that they can catch an identity fraudster early on.
To view your Callcredit credit report, please visit http://www.highcreditscore.co.uk. To learn more about the High Credit Score membership programme, please contact us at 0845 026 1092.
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