Blog article
See all stories »

An article relating to this blog post on Finextra:

Half of Americans want to do all banking online

Nearly half of Americans would do all of their banking online if they could, according to a survey from interactive agency Rosetta.


See article

MITB type attacks put customers off banking online

The fact that 64 % of respondents cited security concerns as a factor preventing them from migrating wholly to online banking doesn’t come as a surprise to me. Why? Because what we’re hearing from the market is that these types of attacks are definitely on the increase.

The security threat in the online channel has never gone away. As anyone who’s been hit by fraudsters will attest, vectors such phishing attacks, key-loggers, Man-in-the-Middle and Man-in-the-Browser attacks, and other types of fraud such as SIM Swaps and Call Forward Unconditional, all pose a very real problem. And it’s important that banks realise that security is a differentiator. Today’s results help illustrate that – they clearly show that security issues (or even just perceived security issues) have the potential to at best discourage, or at worst alienate, customers.

Solving the problem doesn’t have to mean hampering customer experience. The key is to take a multi-layered, multi-factor approach to authentication. By using a combination of visible and invisible layers of security and by ensuring that there is an out of band element and that the solution works in real time, fraud becomes virtually impossible. It’s only at this point, when decisive action is taken to really cut fraud in the online banking channel, that we’ll see a notable increase in the number of people who bank solely online.

5355

Comments: (2)

Brett King
Brett King - Moven - New York 22 May, 2012, 16:16Be the first to give this comment the thumbs up 0 likes

Realistically the majority of customers are already mainstream on online banking and use it with far greater frequency than any other channel. So security concerns aren't preventing wider adoption - I think that is a poor representation of the data.

That doesn't mean, however, that banks shouldn't be taking active steps to combat and prevent MITB and MITM fraud. It's just that security is not really a factor in adoption these days. 

Ketharaman Swaminathan
Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 24 May, 2012, 14:26Be the first to give this comment the thumbs up 0 likes

I've been hearing for close to 10 years that security doesn't mean inconvenience and, as a vendor of security solutions, confess to saying the same thing for 6 out of those years. Unfortunately, friction just keeps mounting with greater security measures in actual practice. To me, greater friction caused by greater security is the biggest threat to increased adoption of the online channel, not the other way around. I think the American banks and e-tailers have realized this. So many years after mandate for it them was passed by FFIEC, most of them haven't bothered to implement 2FA. I haven't come across any figures suggesting that they suffer greater fraud loss as a percentage of transaction value compared to other countries that have implemented more stringent security.

Pat Carroll

Pat Carroll

Founder/Executive Chairman

ValidSoft

Member since

17 Mar 2011

Location

London

Blog posts

79

Comments

40

This post is from a series of posts in the group:

Online Banking

This community is for discussion of developments in the e-banking world, including mobile banking. This can include all the functional, business, technical, marketing, web site design, security and other related topics of Internet Banking segment, including public websites of the banks and financial institutions across the globe.


See all

Now hiring