Losses from online fraud continue to rise

More people are having to bear the loss if they have been a victim of online fraud and identity theft, according to security company Verisign.

The company's latest Online Fraud Barometer found that although the number of victims has remained stable in the past six months, the amounts being taken through online cons is higher and fewer people are being fully recompensed by the banks.

The bi-annual assessment of the UK online fraud landscape found that one in 10 who used the internet had fallen victim to cyber criminals in the past 12 months. The average amount lost to online fraud is now £697 per victim, compared to an average of £352 in March 2010. But there are growing numbers of people who have lost more than £1,000.

Worryingly, although the Banking Code of Practice is meant to protect people from online fraud, the number of victims who have been fully reimbursed fell by six per cent; from 88 to 82 per cent, since March.

“We don’t know why people are not getting fully reimbursed by the banks, and this is a question for them. But the number of people who have complained of this has risen in the last six months,” a Verisign representative said.

However, consumers may be partly to blame for the rise. The study found that British web users’ security diligence when it comes to interacting with businesses online has decreased.

In the search for a bargain the number of people who will only shop from trusted sites with enhanced security, has dropped two percentage points to 80 per cent. The number of victims also varies by region.

Those based in Northern Ireland are the most likely to be defrauded online , with 16 per cent stating that they have been a victim of online ID fraud in the last 12 months, compared with five per cent in March this year.

Scots are regionally the least likely to fall victim to online fraudsters, with only six per cent claiming to have been defrauded in the past year, a significant drop from the 14 per cent recorded in March.

The Welsh are becoming more careless with fewer people claiming to shop solely from sites with enhanced safety measures: down to 69 per cent from 81 per cent six months ago and 85 per cent a year ago

Matthew Bruun for Verisign Authentication (now owned by Symantec), stated: “While the rest of the country is working its way out of recession, the latest Verisign Authentication Online Fraud Barometer shows how lucrative online fraud has become for cyber crooks.

“It’s vital for consumers to appreciate how skillful these criminals are and take the appropriate measures to protect themselves online. Before inputting any personal details on a website – whether it’s their address, date of birth, or credit card information – consumers must take the time to check a site’s security policies and credentials.

"Look out for security certificates and seals and don’t let security standards slip, or they could be in for a nasty surprise."