Online banking fraud ‘up 8,000%’

The UK has seen an 8,000% increase in fake internet banking scams in the past two years, the government’s financial watchdog has warned. The Financial Services Authority (FSA) told peers it was “very concerned” about the growth in “phishing”.

Phishing involves using fake websites to lure people into revealing their bank account numbers.

The amount stolen is still relatively small but it is set to go up by 90% for the second year running, peers heard.

Between January and June 2005, the number of recorded phishing incidents was 312, the Lords science and technology committee was told.

The figure for the same period this year was 5,059, according to banking trade body Apacs figures.

The amount of cash stolen in the first half of 2006 was £23.2m, the committee was told, and was likely to be £22.5m in the second half of the year.

Read More [BBC]

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