Online ID fraud claims one in 10 Australian victims
One out of every 10 Australians that use the internet have lost an average of $1000 to criminals and fraudsters over the past 12 months, according to recent research.
This financial loss totals a massive $1.29 billion over the same period, while $200 million is yet to be recovered by individuals who have fallen victim to online ID fraud.
The research found that fraudulent emails and websites are the most likely source of this identity theft, with 60 per cent of Australians coming across one of these in the past twelve months.
“The cost of online ID fraud in Australia really hits home when we consider that these are everyday Australians whose hard-earned cash disappears into thin air when online criminals steal important personal and account details,” said Jim Drake, general manager for Asia Pacific, VeriSign, which conducted the research.
The results also revealed that complacency plays a major part in online ID fraud, with 69 per cent of 18-24 year old Australians admitting to not checking for enhanced security every time they provide sensitive information such as banking and credit card details.
Furthermore, only half of online ID fraud victims check for enhanced security (such as a padlock icon, green bar or VeriSign tick in their internet browser) despite already being stung by these scams.
When it comes to the most serious cases of online ID fraud, one in 10 Australian victims expect to never recover their lost money, with this sentiment strongest amongst 18-24 year olds and low income earners (those earning less than $40,000 per annum).
“There are many factors at play when criminals strike online and Australians may not realise they have been duped until months later when their credit card statement arrives,” said Drake.
Industry experts have called for a greater onus to be placed on financial institutions and other major online organisations to provide greater visibility of enhanced security measures, VeriSign noted.
“It’s in the best interest of organisations that have a major online presence to give Australians the confidence that they have implemented enhanced security methods,” said Drake.
“We are seeing ever increasing levels of sophisticated online scams and fraudsters so online organisations need to be continually vigilant to safeguard their users’ important personal and financial information.”
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