Online Banking Up 500%

24-July-2008, Writes Dan Drage dan.drage@consumerchoices.co.uk

Latest figures from APACS confirm Britain is becoming a nation of online bankers.

Figures released today by APACS, the UK payments association, show the number of adults using online banking has increased by 505% in the past seven years. From less than 3.5 million in 2000, just over 21 million people were banking online in 2007.

Despite fraud fears, online banking continues to gather pace. The industry's 2007 fraud figures reveal a year-on-year drop of 33% in online banking fraud losses. Criminals persist in targeting online banking customers using phishing and spyware tactics; the banks' own systems have proved difficult to attack.

Phishing involves the practice of con-artists sending unsolicited emails that ask the recipient to enter their bank details and security codes. Each incident involves fraudsters sending thousands of identical emails to computer users trying to make them believe it is a genuine request.

During the first quarter of 2007, 3394 incidents of these phishing scams were reported, compared with 10,235 in the first quarter of 2008.

Sandra Quinn, director of communications at APACS, had the following to say:

“Online banking has changed the way we access our bank accounts, and is now second nature to many of us. The fact that the number of people banking online now exceeds 21 million is testament to how easy, convenient and safe this way of banking is”

She continues:

“However, we strongly urge banking customers to make sure they remain wary of online scams such as unsolicited emails claiming to be from their bank, and to only use a fully protected PC with regularly updated anti-virus software and a firewall installed and switched on.”

Chris Eagle, Commercial Manager at Credit Choices, is quick with the advice:

“For a one stop guide to the advantages, disadvantages and availability of online accounts, take a look at Personal Finance Editor Hazel Cottrell’s guide to internet banking.”