Do you use Internet Banking?

Cyber thieves hijack your money in simple steps. Most internet banking fraud occurs by first, getting criminal hands on the customer’s account information, like their username and password. And then use that information to move his victim’s money to another account or withdraw it to make fraudulent purchases.

Two million Americans suffered from fraudulent bank activity in 2004. Consumers reported an average loss of $1, 200 per bank fraud. Most market researchers attributed the increase in the number of bank frauds to online banking. According to Police sources in a city like Delhi every year, more than 200 complaints are received and the bigger count of victims remains unregistered.

This goes on to show that the Net banking convenience has its set of risks too. The stepping of financial institutions into the virtual realm has lead to a new breed of financial criminals, who largely thrive on the innocuousness of technology loopholes.

The victims reported being deceived into going to a fake website where perpetrators stole their usernames and passwords and later use the information for the perpetrators’ own advantage. Phishing is an attempt to commit fraud via social engineering. The impact is the breach of information security through the compromise of confidential data.

Convenience is the key reason of why millions of people are opting out of traditional banking for online banking. Nearly 45 percent of the 141 million adults in America pay their bills online (according to the Garter 2004 Survey). Banks also enjoy providing the option of online banking because they can save on operating costs.