Online banking has increased by 505 per cent in the past seven years from 3.5 million users in 2000 to more than 21 million last year, according to banking industry body Apacs.

And the body says online banking is becoming more secure as 2007 fraud figures reveal a year-on-year drop of 33 per cent in online fraud losses.

Sandra Quinn, director of communications at Apacs, said: "Online banking has changed the way we access our bank accounts, and is now second nature to many of us. The fact that the number of people banking online now exceeds 21 million is testament to how easy, convenient and safe this way of banking is."

But the fraudsters are not giving up.

Though they are becoming less successful, phishing attacks became far more frequent this year with the latest Apacs data showing more than 20,000 reported phishing incidents in the first half of 2008 – an increase of more than 180 per cent from the same period last year.

Apacs has published a Banking Safely Online advice guide to help remind online banking customers of the need to stay vigilant and follow simple safety procedures when banking online.