Online banking, transactions and security – how safe are we really?

Alex Zaharov-Reutt
Sunday, 02 December 2007 15:41

Opinion and Analysis

This is a good question and it seems clear that banks will only do something if they are forced to do so by legislation like the FFIEC guidelines in the US. Hey, APRA and ASIC in Australia – and banking and regulatory authorities worldwide - where are you?

Another surefire way to get attention is for customers to scream heavily and get some much needed attention. As another noted security journalist, Bruce Schneier, recently wrote in his blog “Future of Malware”: (scroll down to 18 Oct 2007)
 
“And yet banks push online banking to customers with one hand while the other hand pushes problems like Gozi away, into acceptable loss budgets and insurance -- transferred risk. As long as consumers don't raise a fuss, and thus far they haven't in any meaningful way, the banks have little to fear from their strategies. But perhaps the only reason consumers don't raise a fuss is because the banks have both overstated the safety and security of online banking and downplayed negative events around it, like the existence of Gozi and 76service”.

Pretty damning stuff. What else can we add? Perhaps the only way to make banks take far greater responsibility for the customers and the ENTIRE online chain, from a consumer’s computer through to the bank’s central computers, can banks truly take control of their networks and truly keep their customers secure, instead of just giving lip service to security issues.

And if that doesn’t happen, remember – it’s your money. Want better online security from your bank? Let them know you want it. It seems to be the only way to get some real action on banking security. Don’t be soothed by words from banks and regulators that say all is ok. Global authorities might be catching teenagers in their bedrooms ripping off the banking system, but surely that’s just the tip of the iceberg.

Every act of fraud committed against banks and online stores ends up costing us all with the fight against online crime only set to intensify.