Takeover fraud ‘burgeoning in the recession’

The fraud prevention service Cifas has reported a 75% increase in cases of ‘takeover’ fraud during the last year.

As lenders restrict access to credit in the recession, scammers are choosing to take over existing bank accounts rather than apply for new accounts under a fake persona.

The fraudsters commonly build fake websites based on topical stories or popular events, such as the World Cup or swine flu. Visiting these sites can then infect the user’s computer with malicious software.

‘Cyber criminals out there are trying to infect us so they are going to all places that we go,’ said Greg Day, principal security analyst at the IT company McAfee. ‘They'll try to hide their threats in genuine websites or set up fake websites to look like genuine websites.’

Once a computer is infected, the software can monitor which websites are visited and the data that is input. This information, which may include passwords and banking details, is then passed onto the criminal.

However, there are simple steps that account holders can take to protect themselves against this burgeoning type of fraud.

‘There are threats everywhere,’ commented Tony Neate from Get Safe Online. ‘You wouldn't dream of leaving your house with windows open or with the door open. It's exactly the same with a computer.

‘You need to make sure you lock your computer. Anti-virus, anti-spyware, update the operating system - these are the things you need to do to secure your computer like you would secure your house.’