FEAR of crime has scared thousands of people from banking over the internet. Forrester Research, which analyses technology trends, said in August that 600,000 online customers had gone back to using the phone or branch network since the start of the year.
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MESSAGE: Anne Gunther of Standard Life says customers must be vigilant |
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Ken Farrow, who ran the City of London Police fraud squad until three months ago, says: 'We've had to up the ante when it comes to the internet.'
Farrow now works for Lloyds TSB, shielding the bank and its customers from financial crime. 'Internet-related fraud costs £12m a year, which is nothing in the context of total fraud,' he says.
'But the villains are looking ahead. Chip and Pin technology has stamped out some card fraud, but there is no doubt that criminals will gravitate to other areas. We love using the web for shopping and banking, but we must take care.'
Financial organisations ploughm
Lloyds tested new technology with 30,000 of its regular internet banking
customers-last month. It sent them keyring-sized devices that generate six-digit
codes to be typed in alongside user names and passwords. Because the 'keyrings'
have unique codes, key-logging fraud is cut.
Anne Gunther, chief executive of Standard Life Bank, believes that most users
of online services are getting better at security. 'For the banks, it is a never
ending battle against crime,' she says, 'but we do expect customers to take
precautions, too. Most of us have passwords to prevent access to our computers
at work, but not necessarily at home. If you save your log-on details on your
computer, you are making yourself vulnerable.'
Are the dangers significant? Yes - if you are careless. Organisations will
accept liability for losses if there is genuine fraud, but not if customers have
been careless with their Pins and passwords.
Gunther makes the point that identity theft, where fraudsters use a person's
details to apply for credit fraudulently, remains a largely paper-based crime.
'By using the internet and cutting down on the amount of paper statements and
other information that you receive, you can make yourself more secure,' she
says. 'Minimise your paper trail by shredding what you don't need and keeping
the rest somewhere safe.'
Most internet banks allow customers to view statements dating back two years
online.
• For more information, visit website getsafeonline.org
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