Organised crime and the threat to your PC

Sophisticated gangs of international criminals, identity fraud on a massive scale, millions of pounds changing hands - and you're an unwitting part of it.

The downside to more than half of British homes now having broadband internet access is soaring ID theft and cyber crime.

Thanks to low broadband prices, we are using the internet more and more to shop, pay bills, book holidays, play online video games and gamble. But this also means we have become increasingly exposed to the danger of disclosing confidential financial information.

"Consumers with unprotected PCs can unwittingly become conspirators in this type of organised crime," says Lee Sharrocks of security firm Symantec. "A computer user can unknow- ingly download a piece of malicious software that turns their PC into a zombie - allowing it to be controlled by a 'cyber' criminal."

There has been a 70 per cent surge in the numbers falling victim to ID fraud in the second half of 2006 (compared with 2005). Figures from the credit reference agency Experian suggest that a substantial part of this is down to organised cyber crime. This is where criminal gangs operate global ID fraud rings that then use the proceeds to fund other unlawful activities.

"Fuelled by the growth of the internet, identity fraud has moved from being a predominantly opportunistic offence - stealing information from a handbag, say - into the realm of organised crime," says Anne Green, fraud consultant at Experian. "Dustbins are no longer the most profitable option for the organised identity fraudster, who is now e-enabled, IT-savvy and anti-socially networked."

ID fraud today is controlled by no more than a few hundred sophisticated criminal gangs, she adds.

"For example, an Italian gangster might arrange to steal data from US citizens via a 'techie' - software specialist - based in Russia.

"He could then place postal redirects, divert telephone numbers and add secondary identities to an account, and arrange for cards to be dispatched to UK mailboxes for a UK runner to pick up and obtain cash and high-value goods anywhere in the world."

Such concerns are backed by a new study from Syman- tec. Over the past six months, it found, there has been an "alarming" increase in co-ordinated online criminal activity. The company reports a rise in the theft of confidential personal and financial data, which is then bought and sold by cyber criminals on a "global black market". The menu of information being traded includes credit card data for as little as £1 and an identity for just £7 (see table, left).

"What is surprising is the volume of data up for sale," says Mr Sharrocks at Symantec. "On some [online] bulletin boards, there is bulk buying and selling of credit card details and other information - by the megabyte."

According to Symantec, 93 per cent of all targeted attacks are on home users.

The PC can easily become an unknowing player in a crime group's network, where it is used to distribute spam, trade information or drive "phishing" campaigns - which all aim to gather as much personal data as possible for sale to the highest bidder (see table, right).

"The net has allowed crim- inals to move faster," adds Mr Sharrocks. "A phishing website has a lifespan of 40 hours before it is identified as fraudulent. But the sites do the most damage in the first eight hours."

It's no surprise that online ID fraud is a growing threat, when so much is being done to persuade us to carry out more activities on the internet.

The price of broadband has plummeted: high speeds of the sort that allow you to watch films clearly now cost £15 a month, compared to £50 a month in 2003. In many cases, telecoms pro-viders offer free broadband to consumers who already have other services.

Still cheaper broadband deals are expected. Last week BT announced that it had "unbundled" two million telephone lines, allowing more companies to offer low-cost services.

Also driving criminals online has been the advent of chip-and-pin cards, which has reduced fraud in shops and at cash machines.

Online games like Second Life and World of Warcraft have been targeted. There have, for example, been reports of a thriving unofficial market in "assets" used for World of Warcraft, with fraudsters stealing passwords and accessing player accounts.

"This is a case of stealing details from the virtual world to make money in the real world," says Mr Sharrocks.

There are also concerns over networking sites such as FaceBook and MySpace, where young people log on to exchange information, news, gossip and even videos of themselves.

"Be careful who you give your details to when you are in that environment," adds Mr Sharrocks. "If you are being asked for information, you need to decide whether you trust the person requesting that. Never give away details such as nicknames or your mother's maiden name."

All this information can be valuable to fraudsters who, when using it in conjunction with other bits and pieces, can piece together a profile for criminal use.

However, as the table on the back page shows, there are a number of precautions you can take to ensure you are banking and shopping online in a safe environment. Meanwhile, the banking industry is working to combat the risks posed by "card not present" transactions, carried out over the phone or online.

Barclays, for example, has already begun sending out its own "next generation" fraud-prevention technology to online customers, in the form of handheld chip-and-pin card readers.

MALICIOUS ATTACKS AND CRIMINAL ACTS

Trojan horse. While this program presents itself as useful, it is actually a malicious virus that causes havoc with your computer. Increasingly, Trojans are the first stage of a viral attack and their main purpose is to stay hidden while downloading and installing a stronger threat such as spyware. They are often delivered to a victim through an email that masquerades as an image or joke.

Worms. A worm is a piece of software that uses computer networks and security flaws to create copies of itself and weaken defences against hackers and cyber criminals.

Phishing. An attempt to mislead people into divulging confidential information such as bank details and passwords. Phishers typically use legitimate-looking emails to make fraudulent requests for information.

Pharming. With this scam, you might, for instance, visit your bank's website but the site could have been hijacked. So your password details could be redirected to another, criminal site.

Spyware. Software that collects information about your computer, and how you use it, and relays those details to someone else. In some cases, spyware installs itself on your computer without your knowledge. This may mean, for example, that a cyber criminal can see all keystrokes on your computer and record your passwords and log-ins for banks or retail sites.

Source: Symantec

KEEPING YOUR IDENTITY SAFE

Delete emails from unknown sources, without opening them or any attachments they contain.

Beware of "phishing" emails that appear to come from your bank or an online retailer; these often direct you to fake websites that ask you to confirm your personal details.

Guard against "spyware" and "Trojan" software by installing firewalls and up-to-date anti-spyware, and by setting your browser preferences to accept "cookies" only from sites you recognise.

Interesting? Click here to explore further