Online fraud is a multibillion dollar industry in Australia with new research claiming that, on average, Australians lost $1,000 to criminals and fraudsters last year, and that overall Australians lost $1.26 Billion to online fraud. Among the most vulnerable are people in South Australia.
According to the VeriSign online fraud barometer released today, one in 10 Australians have been hit by online fraudsters.
The information compiled by Galaxy Research, shows that the financial loss over the past 12 months totals a massive $1.286 billion and that $200 million is yet to be recovered by individuals who have fallen victim to online ID fraud. 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 12 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.
Similar research has been carried out overseas with results in the United Kingdom showing a comparable number of online ID fraud victims.
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.
Most alarming was the figure that revealed only half of online ID fraud victims check for enhanced security, despite already being stung by these scams. Failure to identify enhanced security measures such as a padlock icon, green bar or the VeriSign tick can lead to a higher incidence of online ID fraud.
Those most affected by online ID fraud include 18-24 year olds and South Australian residents, with these groups averaging losses of $1,619 and $1,511 respectively in the past 12 months. Australians who responded to a fraudulent email or website also paid dearly with an average financial loss of $1,185 per person.
