Exposing the financial harm that online identity (ID) fraud can cause average Australians, the VeriSign Online Fraud Barometer released today shows that one in 10 Australians that use the Internet (13,710,000 people) have lost an average of $1,000 to criminals and fraudster in the past twelve months.

The VeriSign Online Fraud Barometer, compiled by Galaxy Research, shows that the financial loss over the past twelve 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 percent 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.

The VeriSign Online Fraud Barometer is an assessment of the online fraud landscape, measuring Australians’ vulnerability to and experience of online ID fraud. 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 percent 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 in the VeriSign Online Fraud Barometer 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 twelve months. Australians who responded to a fraudulent email or website also paid dearly with an average financial loss of $1,185 per person.

In the most serious cases of online ID fraud during the past twelve months, 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 (earn 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,” added Drake. “The best way for Australians to stay safe online is to make sure they’re always checking for enhanced security when submitting personal information.”

The following groups lead the nation as the most ‘cyber savvy’ Internet users;

• 50+ Australians with 45 percent of this group always checking for enhanced security before inputting any personal details
• Internet users in Queensland represent the most cautious state with 43 percent keeping an eye out for online safeguards
• Higher income earners (those that earn between $70,000 and $90,000 per annum) are also vigilant online with 39 percent always checking for enhanced security

The results of the VeriSign Online Fraud Barometer highlight an increased need for education and awareness of the potential financial damage of online ID fraud. Additionally, 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 so Australians can perform all their online activities with confidence.

“The results of the VeriSign Online Fraud Barometer show that Australians are more vulnerable than they think and that too many Internet users have fallen victim to criminals online,” says Alastair MacGibbon, founder of the Internet Safety Institute. “It’s a fact that Internet users respond well when websites tell them about enhanced security measures they’re employing but we have a lot of educating still to do.”

“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. 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” added Drake.

To find out more about how to avoid online ID fraud, visit https://www.trustthetick.com.

Cyber crime is fast maturing and is a significant issue in Australia. In 2009 more than 20,000 Australians reported becoming victims of online fraud at a cost of nearly $70 million.  Scammers are now using sophisticated behavioural methods, in addition to more common practices like malware and spyware, to steal consumer identities and con Australian consumers. It’s this trend which is the most worrying and in need of more public education according to PayPal.

The Australian Federal Police Assistant Commissioner, Neil Gaughan said: “We are definitely seeing a trend towards increased socially engineered methods which scammers are using to target and trap their victims. These methods are highly intelligent and targeted and frequently prey on consumers’ emotional decision-making process.  The traditional hacker is now only half the problem.”

“Australian consumers need to start applying the same rigor to their security checks when dealing with money online, as they would offline.  Very few people would send cash through the mail without taking the correct precautions, so it’s important that Australians behave the same way online to avoid falling prey to scammers. It is a joint responsibility of the Government, Police and business to prevent these scams.”

Online scams come in many different forms. It could be a false email from a trusted payment service requesting details for a security update or false payments for online shopping purchases. Consumers should always be aware of potential scams when transacting online.

A pioneer of secure online transactions, PayPal is just one business among many that is regularly targeted by scammers. Last year in Australia there was a rise of 40 per cent in banking and online scams, which targeted a number of high profile financial institutions, highlighting the need for immediate action.

As part of its service, PayPal protects the financial information of over 3 million Australian users to enable them to shop safely and securely online.  PayPal allows anyone to pay without ever sharing financial information, meaning that PayPal is responsible for the security of users rather than those businesses who receive payment via PayPal.

Frerk-Malte Feller, Managing Director, PayPal Australia, said: “PayPal is committed to the fight against cyber crime and we want to bring this issue to light to help to protect our 3 million active users and to educate consumers who buy and sell online. PayPal’s highest priority has always been the security of its payment service and we are dedicated to protecting our users from potential scams.”

As part of National Cyber Security Awareness Week, PayPal has produced an education video and a number of top tips to help consumers stay safe online.

PayPal’s top tips to staying safe online.

1. Be suspicious – Apply the same vigilance online as you would offline
2. Ask an expert – Always check with an expert if you are suspicious. For example, if you receive a questionable PayPal email send it to spoof@paypal.com to verify the email
3. Know your tools –Take precautions and use the tools available to you. From virus and malware protection to using a safe online payments provider such as PayPal. There are numerous ways to help protect and increase your security online.

For more information on National Cyber Security Awareness Week, please visit www.staysmartonline.gov.au

National Cyber Security Awareness Week 2010 is from 6 to 11 June. It will promote six easy tips for better online security:

1. Install security software and update it regularly.
2. Turn on automatic updates so that all your software receives the latest fixes.
3. Get a stronger password and change it at least twice a year.
4. Stop and think before you click on links or attachments.
5. Stop and think before you share any personal or financial information?about yourself or your friends and family.
6. Know what your children are doing online. Make sure they know to stay safe and encourage them to report anything suspicious.

For more information, please visit: http://www.staysmartonline.gov.au/