VICTIMS of online fraud could find it harder to recover their losses as banks and building societies brace themselves for a surge in crime in the run-up to Christmas.

Online fraud cost the banking industry £45m last year. It is growing faster than any other type of fraud, up more than 200% over the past three years.

At the moment, banks and building societies usually cover the costs of crime, and will refund any losses if someone clones your credit card or hacks into your online account.

But they might not be so generous in future, experts warn. George Thompson at KMPG, a consultancy, said: “At some point a level will be reached where the banks will either take a harder line or try to rid themselves of the liability.”

Some banks are already shifting some of the responsibility. If a fraudster gets hold of your credit or debit-card details and then uses them to make online purchases, the retailer will have to pick up the tab.

Dave Martin at Logica CMG, a consultancy, believes it is only a matter of time before banks and building societies clamp down on customers. He said: “I think that financial institutions will enforce their terms and conditions more strictly. For example, most now state that any customer who banks online must have an up-to-date virus checker and firewall.”

If not, the bank could, in theory, refuse to recoup any losses.

“Phishing” is one of the greatest threats to online security. Criminals send bogus e-mails purporting to be official requests and ask customers to confirm their online banking details by e-mail or by directing them to a website that looks just like the bank’s own site.

Philippsohn Crawfords Berwald, a law firm, estimates that the amount stolen by criminals through phishing is increasing by 50% a month.

Messagelabs, an anti-virus company, catches 50,0000 phishing e-mails every day. It reports that between 80 and 100 new bogus websites are appearing daily.

Most banks issue alerts to customers when they log on to their online account.

They warn that the bank would never ask a customer to divulge his or her password and pin number in full.

If you fall for a phishing e-mail you will probably get your money back. However, Royal Bank of Scotland/ NatWest and Barclays do not guarantee to refund the losses.

Instead, they make their decision on a case-by-case basis. Barclays said: “It’s muddy waters if a customer says he or she has gone into a website, thinking it was genuine, only to discover later that it wasn’t, so we look at each case individually.”

Fraudsters also disguise themselves as retailers.

Ebay, for example, has been a target. One such e-mail warns subscribers against e-mailing fellow Ebay members directly, claiming that they would not be covered by the protection the company offers.

The e-mail appears to include a message that Ebay has intercepted from another member asking the recipient if he or she had received payment for something bought from him or her. The recipient is then told to click on the link and reply via Ebay. But this will release a “Trojan” into their computer. Trojans capture key strokes that enable them to record passwords and pin numbers that are then sent back to the fraudster.

Another scam is to send an e-mail informing recipients that a purchase they had made online had been dispatched. They would then be encouraged to click on a link enabling them to see carrier and tracking information, but if they do a Trojan will be released.

Martin said: “Trojans are increasingly being used by fraudsters, so the easiest way to protect yourself is never to click on a link in an e-mail.”

HOW YOU CAN PROTECT YOURSELF

Avoid obvious passwords such as your child’s name or your date of birth.