May 19, 2005

Banks attempt to delay phishing

by brian_turner

Barclays, HBOS, Royal Bank of Scotland and NatWest have introduced delays to intra-bank payments between accounts, in an attempt to stop security breaches.

Security is being increasingly compromised by a practice known as phishing. Phishers send e-mails to customers claiming to be from their bank, requesting account and password details. The money is then transferred to an account with the bank and is usually sent overseas via a money transfer.

Barclays has introduced a one-day delay for transfers, which allows the bank to carry out checks that seek to prevent fraud.

MailFrontier, the internet security company, recorded an increase in phishing from 1,082 incidents in April 2004 to 13,482 in March 2005. According to The Association for Payment Clearing Services, online banking fraud cost Â£12 million in 2004.

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Story link: Banks attempt to delay phishing

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