People side-effects of increased security for on-line banking

[Leichter, Jerry]

Sometimes the side-effects are as significant as the direct effects....

 							-- Jerry

Story from BBC NEWS: 
http://news.bbc.co.uk/go/pr/fr/-/2/hi/technology/7091206.stm

Fears over online banking checks 
By Mark Ward 
Technology Correspondent, BBC News website

Complicated security checks could be undermining confidence in online
banking, warn experts.  Security extras such as number fobs, card
readers and password checks might make consumers more wary of net bank
websites, they fear.  The warning comes as research shows how phishing
gangs are targeting attempts to grab customer login details.  But the UK
body overseeing net banking says figures show criminals are getting away
with less from online accounts.  Security check

In a bid to beat the bad guys many banks have added extra security
checks to the login name and password typically used to get access to an
account.

Some, such as Lloyds, have trialled number generating key fobs and
Barclays is trialling chip and pin card readers. Others have tried
systems that check a customers PC and then ask that person to select
which image they chose from a set they were shown previously.

But, said Garry Sidaway from ID and authentication firm Tricipher, all
these checks could be making consumer more nervous about using online
banking.

"The banks have to make this channel secure," he said, "but there is
crumbling confidence in it."

Andrew Moloney, financial services market director for RSA Security,
said banks were well aware that their efforts to shore up security
around online banking could have a downside.  "It registers as a
concern," he said, "there could be too much security and there's a
danger of over-selling a new technology."  "This is not just about
combating fraud," he added. "It's about customer retention rates, user
experience and customer satisfaction."

The misgivings about beefed up security around online banking come as
the UK government's Get Safe Online campaign issues a survey which shows
the risks people are taking with login details.  These lax practices
could prove costly as cyber fraudsters gradually shift their attention
to Europe following moves in the US to combat phishing.  In late 2005
the US Federal Financial Institutions Examination Council (FFIEC) issued
guidelines which forced banks to do more to protect online accounts.
Phishing statistics show a rapid move by the fraudsters to European
banks and, said Mr Moloney, to smaller European banks using less
protection.  Lists of phishing targets gathered by security companies
show a huge shift away from big bank brands such as Citibank and Bank of
America to Sparkasse, VolksBank and many others.  A spokeswoman for the
Association for Payment and Clearing Services (Apacs) which oversees
online banking said its figures showed that the message about safe
banking was getting through.  Statistics released in October indicated
that online banking fraud (including phishing) for the first six months
of 2007 was down 67% over the previous year.  During the same time
period the number of phishing attacks rose by 42%.  "The reason we are
seeing that fall, despite the increase in phishing attacks, is because
consumers are becoming more aware of how to protect themselves," said
the spokeswoman.  "But," she added, "what we are still seeing happening
is people falling foul of phishing attacks."  The spokeswoman urged
people to be careful with login details to bank accounts and exercise
caution when using e-mail and the web.

Published: 2007/11/13 09:33:59 GMT

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