Figures for the year 2014 reveal that the cost of online fraud was 479 million pounds. Banks and credit card companies currently pay out to victims of online fraud, unless they can prove the victim was negligent in some way.
In an article in The Times newspaper, Britain’s most senior police officer and Commissioner of the Metropolitan Police Service, Sir Bernard Hogan-Howe, says that victims of online fraud shouldn’t be automatically refunded. He says it is rewarding those using poor internet security for their “bad behaviour”.
The police say that as many as 8 out of 10 phishing or malware attacks could be avoided if people didn’t click on email links. They suggest that the public should take more responsibility for their own safety in cyberspace, treating it as they would when they leave their own house and lock the front door. This would include using more secure passwords, installing the latest antivirus software and making sure it’s kept up-to-date.
However, consumer groups say that ending automatic compensation could delay payments, as well as discourage banks and other financial institutions from investing in online security.