22 November 2017
visit www.avoka.com

Which? slams banks over poor security

20 October 2016  |  5185 views  |  0 arrow on screen

UK consumer group Which? has slammed the country's high street banks for failing to adequately protect customers from online scams.

A Which? test of 11 high streets banks found that only five have adopted two factor security checks combining something you know, such as a password or Pin, with something you have, such as a card reader or a mobile phone, to protect their customers.

The consumer champion name-checked Halifax, Lloyds Bank, Santander and TSB as among the worst offenders.

Alex Neill, managing director of Which? Home & Legal, points to figures which show losses in 2014-2015 soaring by 64% to £133.5m for online banking and 28% to £323.3m for phone banking.

“The best banks in our test manage to use two-factor authentication without it being too onerous for their customers, so there’s no excuse for others to sacrifice security," he says. “Online banking is increasingly part of our daily lives and at the same time online scams are becoming more sophisticated. People can only do so much to protect themselves from fraud, it’s time for banks to shoulder more of the responsibility and introduce extra protections to safeguard their customers.”

Which? recently used its super-complaint powers to call on the financial regulator to investigate whether banks could do more to protect people who are tricked into transferring money to a fraudster.

Banks named in the survey rejected the consumer group's claims, pointing to multi-layered security controls deployed at the back end to protect customer funds from fraudulent attacks.

Says Lloyds: “The findings [of this research] do not provide provide an accurate reflection of the highly sophisticated security our customers benefit from that is undetectable in this research. We don’t consider the results accurately reflect these factors which have a material impact on how we protect our customers’ daily needs.”

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Banking watchdogs to investigate industry response to money transfer scams

Banking watchdogs to investigate industry response to money transfer scams

23 September 2016  |  5133 views  |  0 comments | 5 tweets | 4 linkedin
Santander has UK's weakest online banking security - Which?

Santander has UK's weakest online banking security - Which?

26 September 2013  |  13052 views  |  5 comments | 4 tweets | 6 linkedin
Which? steps up campaign for portable account numbers

Which? steps up campaign for portable account numbers

13 September 2012  |  3977 views  |  0 comments
Nationwide most secure for online banking - Which?

Nationwide most secure for online banking - Which?

26 August 2011  |  11978 views  |  3 comments

Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.solutions.lexisnexis.comvisit https://www.niceactimize.com

Top topics

Most viewed Most shared
Ripple boss predicts central bank adoption of blockchainRipple boss predicts central bank adoption...
19979 views comments | 31 tweets | 33 linkedin
AmEx partners Ripple and Santander for blockchain-enabled cross-border paymentsAmEx partners Ripple and Santander for blo...
11970 views comments | 15 tweets | 42 linkedin
UK cryptocurrency exchange startup launches debit card for spending bitcoinUK cryptocurrency exchange startup launche...
9698 views comments | 26 tweets | 38 linkedin
Barclays warns of unprecedented online fraud this ChristmasBarclays warns of unprecedented online fra...
9516 views comments | 16 tweets | 33 linkedin
ING brings data privacy to blockchain transactionsING brings data privacy to blockchain tran...
7042 views comments | 22 tweets | 35 linkedin

Featured job

Competitive
Germany, Austria or Switzerland

Find your next job