Types of Online Fraud
Online fraud can come in a range of forms. Here are some of the main types of fraud,
and some tips on how to avoid them.
Phishing (email fraud)
Keystroke Loggers (Trojans) and Spyware
Online employment scams
Identity fraud
‘Phishing’ (email fraud)
What is it?
- ‘Phishing’ is where a customer receives a fraudulent email that appears
to come from a financial institution, typically a bank.
- The email may suggest that the bank is updating its security system.
- It may direct them via a link in the email to a false bank logon webpage (usually
a very good replica of the real webpage).
- Here they are asked to enter their Online Banking logon information to verify their
username and password details.
- This allows the fraudster to access the customer’s Online Banking and make
payments from it.
Below is a typical Phishing email: 22 September 2008. If you receive an email
like this or similar - please refer to our instructions on how to notify the
Bank.
Tips to avoid Phishing fraud to avoid Phishing fraud
- Install security software and keep it up-to-date.
- Never click a link to the Online Banking logon page in an email. The National Bank
will never send you an email asking you to provide personal banking information.
- Never respond to an email from a person or organisation you don't know. Delete it
immediately from your inbox and deleted box or bin.
Keystroke Loggers and Spyware
What is it?
- Keystroke loggers is a method where user's are tricked into downloading a piece
of software onto their computer by either visiting a compromised website, opening
an attachment or following links in an email.
- This software captures user's keystrokes, including Online Banking log-on details,
and sends them back to the fraudster.
- The fraudster can then access the user’s Online Banking and make payments
to themselves or their accomplices.
- Spyware works in a similar way. It is software that the user may or may not be aware
they have downloaded. It secretly gathers information about a person to be
passed on to advertisers or other interested parties.
- Spyware can compromise any financial information passed through the web, for example
during online shopping transactions.
Tips to avoid Keystroke Loggers/Trojans and Spyware
- Install security software and keep it up-to-date.
- Beware of websites offering free software or applications – don’t download
software unless you’re sure the site is genuine and the application is not
harmful.
- Never open emails from people or companies you don’t know – delete them
immediately. Also delete it from your deleted box or bin.
- Never open or install attachments in emails, unless you know who they’re from
and what they’re for.
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Online employment scams
What is it?
- Emails or fake job advertisements claiming to be from legitimate businesses, which
are sent widely to Internet users.
- These are looking for people to act as New Zealand ‘distribution’ agents.
- The ‘agent’ has funds deposited into their account, supposedly from
the company’s ‘sales’ in New Zealand, and is then asked to send
it overseas in exchange for a commission.
- In fact, the money is usually stolen and the New Zealand ‘agent’ is
being used to launder it.
Tips to avoid online employment scams
- Install security software and keep it up-to-date.
- Never open emails from people or companies you don’t know – delete them
immediately. Also delete it from your deleted box or bin.
- Use common sense and trust your instincts – if something looks too good to
be true, it almost certainly is.
Identity fraud
What is it?
- Identity fraud is where someone steals your personal information and uses it to
obtain goods and services.
- For example, they may use your personal details and good credit rating to apply
for credit. Fraudsters stealing your identity could apply for benefits, open bank
accounts or obtain credit cards in your name.
- ‘ Phishing’ emails are a type of identity theft, where fraudsters obtain the victim's
personal Online Banking details so they can access the victim’s bank accounts.
Tips to avoid identity fraud
- Install security software and keep it up-to-date.
- The key to avoiding identity fraud is to be very careful about your personal information
and in particular who you give it to.
- Before you give out personal information online (including your name, address, email,
photo etc.), always ask yourself why it is being asked for and what it will be used
for.
- If you or your family use social networking sites like Facebook, make use of the
security features that these sites offer.
- Be aware, use your common sense and remember if something seems suspicious or too
good to be true, it probably is.