Feeds

Barclays: Internet scam victim

Small scale

  • alert
  • submit to reddit

New hybrid storage solutions

Consumers are repeatedly warned to keep their bank security details secret. Yet these warnings have failed to stop a number of Barclays customers from falling foul of an Internet scam. Security breaches like this damage consumer faith in Internet banking services.

With 3.5 million customers banking online, Barclays has more Internet banking customers than any other bank in the UK. Any suggestion that the security of its Internet banking service has been breached is therefore likely to be big news.

In reality the security of Barclays' Internet banking service has not been breached but a small number of customers have fallen victim to a scam which encourages them to enter security details such as their PIN and password into an authentic looking, but entirely bogus, email. In theory these details can be used to withdraw funds from customers' accounts.

The scam, affecting just Barclays' customers, is the latest to involve a major bank. In August 2003 customers of Citibank in the US received an email asking them to disclose their social security number, a key piece of information necessary to gain access to an online account. The National Hi-tech Crime Unit in the UK claims that scams like those that hit Barclays and Citibank customers are on the increase. Only eight such scams were reported in 2002. So far, 40 have been reported in 2003.

Security breaches like the Barclays scam are actually very small scale. Relatively few customers have received an email and an even smaller number are likely to have supplied their security information. Alertness to the importance of keeping account information secret is now fairly widespread and the majority of consumers are aware that their bank is unlikely to request this information via such a medium.

Yet, the fact that some customers have fallen victim to this scam does little to convince wavering consumers to use Internet banking services. It also highlights that banks must continue to make their customers aware of the importance of keeping their security information secret. Banks must be more proactive in this area as a lack of public knowledge will only serve to increase consumer reluctance to go online with their bank.

Recommended research: Reuters Business Insight, "Online Banking In The United Kingdom" (RBFS0046

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.