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Online fraud (including phishing)

The catch

REMEMBER: IF IT SOUNDS TOO GOOD TO BE TRUE, IT PROBABLY IS!

Swindlers have wasted no time in exploiting the internet for their own gains. And the internet makes it even easier for them to hide, shut down or move on. It's quick, cheap and can be anonymous.

Internet auction sites are not always what they say they are and some customers receive nothing, having paid up-front.

There have been instances of spoof bank websites whose web address looks like a real bank but is very slightly different. Many people have been conned out of thousands of pounds in this way. You may also receive emails purporting or pretending to be from your bank which ask you to re-verify details such as your online banking passwords or PIN numbers. This is known as phishing. Remember, a bank should never approach you for this information, so do not respond without checking first with the firm concerned.

False messages may also be posted on internet sites to encourage you to buy or sell shares. And with a little know-how, a swindler can target thousands of would-be investors with specific requests via spamming (uninvited email). It doesn't matter to them that they only get a handful of replies. It hasn't cost them anything to hook their victims in so it has to be a good deal.

Protect yourself

With millions of internet users, the opportunities for swindlers to carry out online fraud are huge. Don't let them get away with it. Remember:

  • Always check financial websites carefully. Make sure the web address is correct and isn't spelt slightly differently. Most experts agree that it is generally not wise to surrender any information online unless the contact address or telephone number is clear.
  • Never sign up to anything immediately, there's always time to do your own research. Get all the facts about the company or individual, trawl through the internet, financial newspapers or company brochures and get your facts straight. Think about getting independent advice if you're in any doubt.
  • NEVER give your bank account details, credit card numbers or other personal information to anyone you don't know or haven't checked out. And never give PIN numbers to anyone – genuine bank officials would never ask for this information. This is just as valid online as offline.
  • Don't believe rumours that you read on the internet. There could be a host of reasons why messages are trying to persuade you to open a specific account or buy certain shares. People in cyberspace are not always who they seem.
  • Don't make a financial decision based on how professional a website looks. It's easy and cheap to create, register and promote a website. And always read the small print carefully, even online.
  • Get in the habit of deleting any emails you receive promoting get-rich-quick schemes or chain letters and requests to send cash through the post. They're not worth reading.