The latest news from United Kingdom’s major retail bankers says that if your online bank account has been compromised and you didn’t use any Internet computer security software such as antivirus and antispyware (e.g. Norton 360), you solely bear the responsibility for the loss, and they won’t compensate you a dime. A clause has been added to the newly updated Banking Code to make this very clear.
According to recent Internet safety and online identity fraud research, the British Police are being informed of a new cybercrime event every 10 seconds. This accounted for over GBP 300 million in financial loss for private and business bank customers in England in 2007. However, many online computer safety specialists claim that the vast majority of online crimes are never reported because they haven’t been detected or were of a lesser severity.
They don’t risk their lives to get money, they don’t shoot at anyone any more, and they don’t do any physical harm to their victims. Today’s crime is online crime and uses computer safety holes and threats in software and equipment to sneak money from peoples’ pockets while they’re sitting right in front of their laptops. No need to shoot nor to threaten anybody. Just a few smart code snippets smuggled into the victim’s PC via email or a booby-trapped website and you are done. Simple as that.
As Marcus Ranum, the author of The Myth of Homeland Security, explains, cybercrime delivers a criminal with a means of automation and the advantage of being anonymous. The criminal needs very little in terms of information technology knowledge or hardware and can cross global borders very fast, making it more effortless to hide and harder to be prosecuted.
So remember that you, the web user, are alone responsible for your doings online. And if you get your online banking password stolen and money robbed by cybercriminals, chances are no one except you will pay for this. Your identity is already an easy enough target for those knowing how to steal it. To minimize the chance of this happening, be sure to get yourself a copy of at least some of the free antivirus and antispyware software available.
Friday, 18. April 2008
Wow, GBP 300 Million in losses? Now I’m curious to know what it is in the U.S. and/or globally. It feels similar to car accidents. There are tons, but everyone assumes it’ll never happen to them!
Saturday, 19. April 2008
This is why a Online Security class should be required before you get online.
As users get infected and their puters are used for Bots, they contribute to the “Clogging” of the Internet.
This affects us all, especially those who strive to remain secure.
Saturday, 19. April 2008
So I guess not having adequate security software in place is the legal equivalent of leaving your keys in the car, right? I suppose one question will eventually come down to who determines just what is “adequate.” This will undoubtedly be decided in the courts, but many judges are not technologically savvy (to put it mildly) so here’s a great new opportunity for competing “expert witnesses.”
Monday, 21. April 2008
In 2007, internet crime led to $240 million in reported losses, a $40 million increase from 2006, according to the 2007 Internet Crime Report, conducted by the Internet Crime Complaint Center.
Another recent research shows that in Britain once in 10 seconds a new cybercrime is being registered. Then comes the best part – “experts believe that about 90% of cybercrimes stay unreported.” If this is the case then we should be doubly careful about our online activities.
By the way, you might want to take a look at this post Cybercrime – Evolution Future Trends that
discusses the latest happenings in this field.
Monday, 21. April 2008
BBA here. We certainly aren’t saying we won’t compensate web users who are defrauded – quite the opposite. Importantly the burden of proof will always lie with the bank to prove the customer has behaved unreasonably or fraudulently. Banks and building societies are serious about protecting online banking users. Some offer assurances above and beyond what’s in the Banking Code; some offer to provide antivirus software; all have invested heavily in online security. The new Banking Code does nothing to change this commitment.
Monday, 21. April 2008
Great comments! And thanks, Brian, for clarifying. It makes a difference knowing that “burden of proof” tidbit…