Figures from payments association APACS indicate that online banking fraud losses have declined by 67% over the past year, though online card fraud continues to be a problem.

The APACS stats show that online banking fraud losses, which includes phishing, have dropped from £22.4m for January to June 2006, to £7.5m for the first six months of this year.

APACS credits improved bank security measures, such as the introduction of home chip and pin devices, for the promising figures, though it did add that there was an unusually high level of online banking fraud in the first half of 2006.

The figures weren't so good on other types of fraud - phishing incidents are on the rise, from 5,087 in the first six months of last year, to 7,224 for the same period in 2007, a rise of 42%.

Meanwhile, card not present (CNP) fraud continues to increase, up by 44% for January to June this year, with losses totalling £137m. APACS attributes this increase to the rise in the number of people shopping online - while the number of online shoppers has increased by 157%, fraud has only risen by 122%.

Related stories:
Online shoppers not deterred by cyber-crime
Online banks see growth among older web users

Graham Charlton

Published 3 October, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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