UK online banking use soars

New Apacs research shows figures now top 21 million

The number of people banking online in the UK has increased by over 500 per cent in the last seven years, according to the latest figures from UK payments association Apacs, but fears persist over card-not-present fraud - especially that committed online.

The new stats from Apacs show that the number of internet bank users has risen from less than 3.5 million in 2000 to over 21 million by 2007, highlighting that usability issues and fears over security have largely been overcome.

However, phishing attacks have grown significantly in recent months, with over 20,500 attacks in the first half of this year, an increase of over 180 per cent from the same time last year.

And new research from fraud prevention firms 192business.com and The 3rd Man has illuminated the true picture of fraud in the UK. Unsurprisingly, the study of over 30 million good and bad card transactions over the past six months found that the most densely populated spots were the hottest for card fraud.

London's Thamesmead came top of the list with postcode regions SE18, SE15, SE6 and SE17 comprising the top five worst areas.

192 director Dave Pope argued that the card-not-present fraud figures put out by Apacs are only "the tip of the iceberg" as far as the true picture of online fraud in the UK goes. He added that the research found evidence to suggest local policing in UK regions could help in the fight against internet crime.

"Even an over-reaching national body and national database means preciousn little if there aren't more bobbies on the beat," he added.