Icelandic banking instruction could allow fraud opportunity

News by Dan Raywood

Fraudsters could be able to intercept Icelandic banking customers who try to rescue their savings.

Fraudsters could be able to intercept Icelandic banking customers who try to rescue their savings.


David Holman, director at First Cyber Security, claimed that as the Financial Services Compensation Service has just announced the mechanism for icesave customers to get their money back from the financially troubled Icelandic bank, fraudsters will be able to intercept with spam emails.


The bank told its 230,000 savers that each of the savers will receive two emails and that they will have to login to their existing icesave account to nominate and give details of their alternative account which is to be credited with their savings. Holman claimed that the customers expecting an e-mail to be received will encourage customers to give away other banking details.


Holman said: “Putting savers who are desperate to get their savings back at this level of additional risk is inexcusable. It is so easy to set up a copy of an authentic website and send out mass emails and have consumers believe them to be real.


“Many major organisations that wish to protect their brand integrity and continue the trust they have built with their customers to their online experience, need to consider a failsafe method of building in trust and consumer confidence using the very latest third party trust mechanisms which are now available.”


Recent figures released by the UK Payments authority APACs, show that 18 per cent of people still select website addresses from emails they receive without realising that they could be giving their personal information to a fraudster. Whilst the banking code allows communication with customers by email, most banks actively discourage its use, as fraudulent emails giving fraudulent website links are prevalent throughout most email inboxes.


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