Internet banking fraud escalates at NAB

An internal National Australia Bank report described internet banking fraud in colourful language. Observations included that the banking industry in Australia is “under siege”, that there is a “tide of losses” and describes the growth in fraud in the year to June 2004 as “exponential”. The internal NAB report said internet banking fraud at National cost the bank around $1 million a month, up from $170,000 a month in 2003. The bank recovers less than 30 per cent of losses. The NAB report forecasts that annual losses could rise to $14 million this year and to $32 million by 2008. The NAB report also asserts that one other large Australia bank lost $25 million to internet banking fraud this year.