More and more of us are enjoying the benefits of Internet banking, such as 24-hour access to accounts, reduced transaction costs, and the convenience of banking from home or work. But with email and internet fraud on the rise it pays to keep safety in mind when banking online.

Email fraud and phishing

One of the more common methods used to catch unwary internet users revolves around email and is often called ‘phishing'.

How do they do it?

Usually, the victim receives an email out of the blue. The email might claim to be from a bank or another organisation, and will try to lure the victim to reply by, for example, claiming the company is conducting a security upgrade, or that there is a problem with account access that requires the victim to verify their details, or that there is an outstanding payment etc. Often, victims are asked to send their account details, or provide their password, or click on a link to visit what is claimed to be the company's website.

Unfortunately, in following these instructions, the victim may be providing all the information the fraudster needs to gain access to their accounts. Either the fraudster obtains the victim's personal details from the information they provide, or, by the victim clicking on the hyperlink in the email which downloads a program called a 'trojan'. A 'trojan' is software that the fraudster can use to gain access to the victim's computer and their keystrokes, which will ultimately give away their banking access codes and other personal account information.

You may have received a fraudulent email…now what?

If you think you might have received a fraudulent email, DO NOT reply to it and DO NOT follow the instructions in the email. Avoid clicking on any hyperlinks that may be contained in the email.

Instead, contact the organisation that the email allegedly comes from. For example, if it says it's from your bank, contact your bank directly and find out if they have sent you such an email. If they have not, your bank will be able to help you determine what to do next. This may involve deleting and/or reporting the email to the appropriate authorities.

Tips for keeping your online banking secure

• Never respond to any email that asks you to enter your banking details, passwords, personal account information etc – even if it claims to be, and looks like it is, from your bank. Legitimate companies will never ask you for this sort of information via email, and that includes your bank!
• Remember, if there really is a problem with your account, your balance, an overdue payment, or any security features associated with your account, your bank will notify you in writing (via mail) or over the telephone, and not via email. Therefore, be exceptionally cautious about any emails that claim to be from your bank, and contact your bank if you have any concerns.
• Only go to your bank's website by typing its URL (i.e. its website address) into the address bar of your internet browser, or by clicking on the link in your "Favourites" menu if you have already saved the address to your Favourites listing. Never click on a hyperlink provided in an email, even if that email looks like it might be from your bank.
• Once you've completed your online banking transactions, always exit your account by using the "sign out" or "log out" facilities on the website.
• Try to keep your anti-virus software on your home computer up to date, and visit the website of your software providers regularly to see if there have been updates to the software that you can download. Keeping your anti-virus software up to date can help you stay a step ahead of the fraudsters.

To learn more

If you'd like to know more about what to look out for and how to bank safely via the internet, try visiting the websites of these organisations for more information and tips:

• Australian Securities & Investments Commission's consumer website, "fido": www.fido.asic.gov.au
• Australian Competition & Consumer Commission website: www.accc.gov.au
• Australian Bankers' Association website: www.bankers.asn.au

Also visit your own bank's website – most major banks have information to help their customers bank safely and securely online.