Convenience is the number one reason why people nowadays are choosing internet banking over traditional banking. With just a click of a finger, a person can pay bills, transfer funds and create a new bank account. The main concern regarding this system is the increasing amount of fraudulent acts linked to online banking due to the rising popularity of online banking. The popularization of online banking made offenders aware of how much money they could make if they learned how to manipulate and hack banking programs.
Internet banking fraud typically involves the offender to get their hands on the clients account information (username and password) and use that to move the funds to another account or withdraw it for himself. Some of the fraud schemes offenders do is one; observing the potential victim making financial transactions and recording this for him to use later on. People who often times access their accounts in public places are the victims of this scheme without knowing that criminals are looking behind them.
Another famous fraudulent act in online banking is called phishing which combines the words password and fishing. This scheme would involve send scam emails from fake websites and fake internet account to get vital information from people and use this to open online bank accounts. Most of the time, people would think that the email is involved with the bank and trusts them by giving out their personal info. The Trojan horse is another internet banking fraud scheme made by offenders. This would involve embedding malicious software into a persons computer and would often time record keyboard strokes. The offender would track the clients username and password as he or she inputs it on the keyboard without knowing that someone would use it later on.
Plan of action has been done to some internet banking sites to keep the clients account safe and secured. Some banks offers a guarantee pay out in case a fraudulent act has been done to a clients account and offers to shoulder any losses because of it. It is still best for anyone who wishes to transact online to be very careful in opening emails and using public internet access, which would be the best precaution anyone could do to prevent internet banking fraud.