To print: Click here or Select File and then Print from your browser's menu

This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://www.silicon.com/financialservices/0,3800010322,39331726,00.htm

UK struck by cyber crime wave
Financial fraud leaps 20 per cent

By Nick Heath

Published: Thursday 30 October 2008

The UK is suffering a cyber crime wave that has seen online financial fraud jump 20 per cent, according to a new report.

Reports of cyber crime in the UK rose nine per cent over 2007, according to the UK Cybercrime Report by online identity company Garlik, which compiled government, police and analysts statistics.

Security from A to Z

Click on the links below to find out more...

A is for Antivirus
B is for Botnets
C is for CMA
D is for DDoS
E is for Extradition
F is for Federated identity
G is for Google
H is for Hackers
I is for IM
J is for Jaschan (Sven)
K is for Kids
L is for Love Bug
M is for Microsoft
N is for Neologisms
O is for Orange
P is for Passwords
Q is for Questions
R is for Rootkits
S is for Spyware
T is for Two-factor authentication
U is for USB sticks/devices
V is for Virus variants
W is for Wi-fi
X is for OS X
Y is for You
Z is for Zero-day

Internet and email fraud saw the largest hike, jumping to 250,000 incidents in 2007 from 207,000 in 2006.

Garlik CEO Tom Ilube attributed the rise to the "professionalisation of online financial fraud" saying cyber criminals were turning to "sophisticated and professional techniques for trading and selling personal data for financial gain".

But there could be some hope on the horizon. Speaking at the RSA Conference 2008 in London, Microsoft chief security advisor Ed Gibson, who helped advise government on the newly formed Police Central E-crime Unit (PCEU), described the unit as a "giant step forward for the UK" in tackling this type of everyday internet fraud.

He said: "There was a lack of reporting mechanism, now UK consumers can feel comfortable they will have a reporting mechanism with the PCEU."

The Garlik report uncovered an explosion of black-market sites trading stolen UK identities and financial details, rising from 27 to 57, with more than 19,000 illicit traders having been identified.

Online identity theft dropped by eight per cent to affect just over 80,000 victims, while computer misuse offences - such as hacking and the spreading of viruses - affected 132,800 people compared to 144,500 in 2006, and the number of online sexual offences fell by two per cent to 830,000, the report said.

Ilube said in a statement: "The startling growth and professionalisation of online financial fraud is the big story coming out of this year's study."