Online Banking Fraud Suffers Increase Essay

984 Words 4 Pages
A. Presentation of the issue

Online banking is a service that many modern banks provide now a day and with the passage of time more and more people are using this service (Anonymous, 2010) due to the commodity and convenience of doing payment transactions (Lanham, 2008) directly from their homes instead of going to an actual bank (Ponemon, 2005). However as the number of credit cards used to make transactions on the internet increases also does the number of people that fall into frauds and phishing scams made to obtain their private information (Unknown, 2010). With this information, phishers proceed to wire transfer money from the “stolen” bank account to theirs (Sullivan, 2004).

Studies made by the UK Cards Association show that
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After these are targeted they plan the con and use mass messaging software that spammers use. The next step is the creation of the actual message that will be delivered to collect data from the victims (Wilson, 2005). The most common way that this is done is through an e-mail that warns the users that their banking account will be deleted unless they go to the “banks website”, which is also a mimic of the real one, and provide their personal information (Wikipedia, 2011). The third step of the scam is the actual attack (Wilson, 2005). This is where the “phony” and supposedly real message is sent. The fourth step is the collection of data if people fall for the scam (Wilson, 2005). Phishers record the information that the victims entered in their website if they fell for the scam. The final step of the phishing scam is the identity theft and fraud (Wilson, 2005). Here is where the phishers use the collected data to make purchases or wire transfers to other bank accounts, leaving the victims losses in their funds.

If each time more people use online banking services then it is to be expected that the probability that a user falls into one of these scams is going to increase as well. This is why the number of phishing attacks rose between the years of 2008 and 2009.

C. Impact of the Issue

The fact that with the passage of time the quantity of credit cards available in the world wide web increases shows that the

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