With technology getting more and more advanced, banks are outdoing each other in adding banking services that can be accessed across various platforms and applications. When customers think banking convenience, online banking is what immediately comes to mind.

Unfortunately, with the tough economic times, cyber crooks and fraudsters are also growing more tech-savvy nowadays and this has led to the rise of scams victimizing hapless online banking customers. California-based research firm Javelin Strategy and Research reveals that in 2008, identity theft cases numbered close to 10 million, growing by 22% from the previous year.

As with all types of frauds, the best way bank costumers can counter this is to have more information and be fully aware of the possible dangers that lurk in cyber space. Here are 5 of the most common online banking scams that consumers should be aware of:


Although many online banking consumers are now aware of what phishing is, a lot of them still fall victim to it.  According to research firm Gartner Inc., about 5 million lost money due to phishing in 2008.

In electronic frauds, phishing is perhaps the oldest form of identity theft where scammers send out an authentic-looking email that purportedly comes from the victim’s bank, requesting him or her to update his or her account information for various official-sounding reasons. The client will then be asked to click on a link that is supposed to direct him to the bank’s website but instead takes him to a site that looks exactly like the bank site but is actually a fraudulent one, where the scammers can record whatever pertinent data the client enters.

To avoid being conned into a phishing scam, never click on links for bank account updates. If any account updating needs to be done, do so by typing in the bank website (usually www.name-of-bank.com) yourself. If you receive any “bank emails” be sure to call your bank to confirm if this is a legitimate communication.

Stolen Passwords.

Stealing, cracking, or guessing passwords is another method widely-used by hackers to gain access to bank accounts or financial transactions. Studies have shown that the more experienced and technologically advanced of these hackers can make about one billion guessing attempts in one second.

The best prevention bank customers have against these attacks is to use more secure passwords. The longer passwords are usually harder to crack, as are passwords that are composed of both letters and numbers. A 5-character password can be cracked in 10 seconds, while an 8-character can only be correctly guessed in 115 days. In addition, if you can’t commit your passwords to memory, make sure that you record them in a secure document and not in plain view of anybody who passes by your office desk.

Worm or Virus Attacks.

Another form of online scamming that is getting to be more popular these days is the use of worms or viruses. Consider this scenario: A “friend” of yours in MySpace or Facebook invites you to watch a must-see video. Thinking that you know the sender anyway, you click the link to watch. Then the computer freezes and you are informed that your video software needs upgrading. Once you click to “upgrade”, what you get is not an updated version of your video player, but a Malware or Trojan horse.

Once the virus enters your computer, most of the data in your computer will be copied and sent to the hackers, who then will use whatever information they can glean to access banks accounts or financial documents. There are even more advanced types of Trojans which can make fraudulent transfers while an online banking client is logged on to the bank’s website.

To protect your computer from Trojans and Malware which are now getting all too common, invest in an up-to-date and effective anti-virus software. Also, you would want to be careful on what sites you are logging to on the web as many of these sites can unwittingly transmit these viruses.

Malicious Software on Computers in Public Places.

Cyber crooks have also learned the art of preying on individuals using public computers. These hackers even go as far as working in hotels, airports, internet cafes, and other business centers where people go to access the web. They start their fraudulent schemes by installing software on the computers which records the keystrokes entered on the computer.

As soon as someone accesses an online banking site through these PCs, the account data such as username or password, will be stored by the malicious software earlier installed and sent to the scammer’s computers. It is advisable then to refrain from accessing your online bank accounts when using computers in public places.

Targeting Wireless Networks.

While using a wireless network can prove to be very a convenient mobile access to the internet, it is also very vulnerable to fraudsters’ hacking including interference, hijacking, eavesdropping, and other similar wireless attacks. Take extra precaution when using wireless networks especially outside of your home or office, although even these locations can still be penetrated by financially-motivated scammers.

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  • Thanks for your article and warnings:)

  • Thanks for your article and warnings:)

  • Wegenbelastingberekenen

    It’s not only the online scams you have to be afraid of, lately there is also a lot of skimming going on in the western european country’s. When I read the newspaper I see this happening on regular base.

  • OMG! Thanks for your sharing!  I should take care of my banking information!

    •  well its a great thing that you inform us about this spam because i was interested in such business.

  • You have to be careful with your bank information. thanks

  • asim ali

    I think I would never understand. It seems too
    complicated and very broad for me. I am looking forward for your next post.

  • Hzz

    Thanks for this article. I will take care of my online banking.

  • John

    i got scammed last week £4300 they took from my natwest account but i gt it refunded pretty quick

  • Samsung Galaxy Indulge Review

    Worm or Virus Attacks are mostly common to get your information if you ask me but thanks for letting us know the other 4 which I didnt really expect to be.

  • very good advice. I have been getting very concerned about this issue

  • I almost got scammed, but i was so lucky to exam first because i feld something was not wright, when it sounds to good to be true it usually is!!

  • buy here pay here car lots

    Worm or Virus Attacks are mostly common to get your information if you
    ask me but thanks for letting us know the other 4 which I didnt really
    expect to be.

  • Banks are the scam! 

  • I been through this before and lost almost $3000

  • Alistair Kewish

    The first set of alarm bells that sound out loudly is concurrent with the receipt of an alleged e-mail.
    This is where the Net provides total anonymity and excellent cover for scamsters and phishers.
    The one fact alone that the first salvo is arriving by e-mail should arouse hackles.
    No-one in the banking community uses e mail as it is so prone to abuse and duplication.
    What seemed to be a lovely message from the IMF only today suggesting I am a lucky dude, being made richer overnight should be a bit fishy.
    Or maybe I should have typed ‘phishy’?
    The real nature of such a message I will leave to your imagination. Bit early for the Xmas turkey?!?