More than one in 10 internet users was a victim of online fraud last year, according to a report published today.

The 3.5 million people who experienced online fraud lost an average of £875 each, according to research backed by the Government and internet industry.
One in 10 internet users a victim of fraud
Many of the victims had failed to take basic precautions - such as installing up to date internet security software or using different passwords for different sites.

Despite the growing concerns about internet security, fewer than half the 2,441 people surveyed believed they were responsible for their own safety online. Most claimed that banks, stores or internet companies were responsible for stopping fraudsters.

Pat McFadden, the Cabinet Office Minister with responsibility for Transformational Government, said: "As we make more services available online so we need users to take the same basic precautions in using the internet as they would when making transactions in the high street - such as not sharing your bank details or passwords.

"This survey shows that although the internet offers great opportunities for people to carry out their business when and how they like, people must also take care if we are to stop criminals abusing greater use of the net."

The report, titled Internet Safety: The State of the Nation, was commissioned by the Government and the Get Safe Online campaign. It found that 12 per cent of internet users had experienced fraud last year.

Six per cent of internet users, or 1.7 million people, suffered fraud shopping online, while four per cent (or 1.2 million) were victims of bank account or credit card fraud.

The rise in fraud reflects the increasing use of the internet in Britain. The report found that 93 per cent of people with access to the internet used it daily, spending an average of £1,044 per year on goods and services.

The report found that many people were leaving themselves vulnerable. The typical internet user now has nine different passwords to sites including online banking, internet shopping sites and "social networks". However, five per cent admitted that they used one password for all sites, while 60 per cent said some passwords were the same.

About 45 per cent said their passwords were made up only of real words, which are the most easily cracked by criminals. A quarter of people said they did not have anti-spam software.

One in five said they had replied to spam, or junk email, messages asking them to be removed from internet mailing lists.

According to Get Safe Online, replying to spam is a mistake because it confirms that your email address is active.

The report found that 46 per cent did not have anti-spyware, while seven per cent had no anti-virus software.

Around 13 per cent of users did not use a firewall - software that prevents access by outsiders.

Twelve per cent of users said their home wireless internet connection had no password protection, allowing anyone in the street to use the home's internet service, and take control of a computer.

Just 48 per cent of internet users said they were responsible for their own online safety. Sixteen per cent believed their bank was responsible for their online protection, while 13 per cent felt it was up to their internet service provider.

Tony Neate, the managing director of Get Safe Online said: "The internet is a fantastic resource and its use is growing daily. Unfortunately, it is now also being used by criminals who are out to defraud us.

"If we all take greater care to protect our personal information online, we can reduce the majority of these criminal activities.

"Our message is that each one of us has to take greater personal responsibility for our own online security."

The Get Safe Online, website, http://www.getsafeonline.org, offers tips and advice about online safety.

Telegraph.co.uk