One in Eight UK Internet Users Victims of Fraud
A recent survey of 2,000 Internet users in Britain, commissioned by VeriSign UK – part of the American network infrastructure firm – has revealed how prevalent this form of online crime is. The monetary loss in Britain in the past year alone has been put at £2.61 billion. Of the UK’s population, not only has 12 per cent been a victim of online ID fraud, with an average of £463 stolen, but 14 per cent are still waiting to be reimbursed. Many victims say they have been extra careful when buying online, but with so many fraudsters lurking in the shadows it is clear that much more education on how to protect yourself is required.
The survey found that in general British web users are conscientious when it comes to online shopping. Of the respondents, 82 per cent claimed to buy only from sites with enhanced security settings, with 3 per cent more women saying they checked security before making a purchase. People aged between 45-54 are defrauded most often, with Londoners the most careless online buyers and the Welsh the biggest victims. Interestingly, Scots are the least likely to fall victim.
Richard Hurley, communications manager at CIFAS, the UK’s Fraud Prevention Service, comments that, “Increasing numbers of cost-conscious consumers are now shopping online, and whilst the rise in online spending is great for online retailers, it opens up a Pandora’s Box of security threats. Cyber criminals are undoubtedly getting more devious, but consumers can easily lessen the likelihood of online fraud by stepping up their own awareness of how they can protect themselves.”
VeriSign commissioned the survey to launch its UK Fraud Index, a bi-annual barometer of online fraud in Britain, which is supported by an ongoing educational campaign ( www.trustthetick.co.uk ). Martin Mackay, a VeriSign vice-president, says “Research reveals that there isn’t a relationship between the number of people who check a website’s security and those who have been scammed. There are still too many out there who simply don’t know the danger signs to look for.”
Other survey work by VeriSign has shown that costs and reputation damage associated with ID theft are significant to both consumers and business. The community is certainly on alert, with up to 90 per cent of consumers saying that ensuring no one else can gain access to their account and take on their identity is a major worry. But to cut ID theft costs will require much greater participation from consumers, who so far have had few opportunities to protect their online identities beyond user name/password protection. Two-factor authentication, also known as “strong authentication”, combines what consumers know – such as their user name and password – with something they have, such as a special one-time password generated by a token, smart card or mobile phone.
Measures such as strong authentication have been shown to significantly reduce instances of fraud and ID theft. Even when the user name and password are stolen, these details are useless without the additional layer of protection.
If you’re running a business and you have staff members engaged in online purchasing, this is a salutary warning to ensure that they are aware of the risks. It’s also an opportunity to let them know about other dangers that lurk on the Internet and how Computer and Internet Forensics can both detect and block threats to the viability of your enterprise.
