[Please note this article replaces the earlier one which was a draft and was mistakenly published too soon.]

There has been $8bn of online fraud over the past two years says Consumer Reports in a new investigation that claims one in three Internet users will become a "cybervictim."

In addition, consumers spent $7.8bn on new computers and repairs because of problems caused by viruses and spyware.

Those that fall prey to phishing, in which fraudsters mimic a bank's web site for example, lose an average of $850, a five-fold increase compared with $165 in 2005.

Consumer Reports National Research Center compiled the report from a nationally representative sample of 2,000 households with Internet access.

Here are some findings from Consumer Reports:

Twenty-nine percent of survey respondents said a virus, spyware, or phishing scam caused serious computer problems and/or financial losses in the last two years. And based on survey projections, virus infections prompted an estimated 2.6 million households to replace their computers in the past two years. Additionally, 35% of survey respondents didn’t use software to block or remove spyware. And CR projects that 2.4 million US households with broadband remain unprotected by a firewall.

Spam

The incidence of heavy spam remains as elevated as last year. Survey results indicate that about 795,000 households continued to buy products advertised through spam. Additionally, in 8% of the households surveyed that had children under 18, a child had inadvertently seen pornographic material as a result of spam.

Viruses

The frequency of virus-induced problems is at the same high level as last year. In the latest survey, 39% of respondents reported a virus infection in the past 2 years. Of those, 34% had to reformat their hard drives; 16% permanently lost important data; and 8% had to replace hardware.

Spyware

In the past six months spyware prompted nearly a million U.S. households to replace their computers. Among survey respondents, two of the biggest risk factors for spyware infection were using file-sharing software (like Kazaa) and having minors at home who go online. In homes where children under 18 used the Internet, there was a 28% greater incidence of spyware infection in the past six months than in other homes.

Phishing

Only 8% of respondents submitted personal information in response to conventional phishing e-mails. But the median cost of a phishing incident is up substantially at $850 versus $165 in 2005. New variants on phishing have emerged. “Pharming” infects a computer so that even if you type in a legitimate Web address you’re redirected to a fraudulent site. “Spear phishing” targets email addresses stolen from a company.

Consumer Reports rated commercially available software packages that are designed to protect Internet users from threats. It also created its own computer viruses for the tests. Zone Labs Zone Alarm Internet Security Suite came out top in the tests. Trend Micro PC-cillin Internet Security also did well. Spybot for antispyware was also highly rated.

More information on Consumer Reports security is here.