Royal Bank of Scotland (RBS) is offering free software to its customers in an attempt to reduce the threat of online fraud.

The software, which can be downloaded on the web, works alongside existing anti-virus systems and firewalls aiming to mitigate malware, phishing and e-fraud attempts.

Some 500,000 customers, or 90 per cent of clients banking online with RBS and NatWest, are already using the Trusteer-supplied software.

Customers of other banks owned by the group including Coutts, RBS International, NatWest International, Ulster Bank, The One account and Isle of Man Bank can also now download the security tool.

“RBS Group is committed to providing the most secure online banking environment possible and has taken considerable steps over the past few years to warn customers about online fraud and encourage them to take appropriate steps to protect themselves online,” said RBS e-crime prevention manager Gavin Coull.

“[The system] allows us to quickly and effectively react to emerging threats. It also enhances the effectiveness of our existing card reader security,” he said.

According to the Office of Fair Trading, 30 per cent of UK web users avoid shopping online due to a lack of trust of businesses and concerns over ID fraud.

The fears are not unfounded – debit and credit card fraud continues to rise, increasing 14 per cent to £609m last year, according to payments association Apacs.