Wednesday, January 09, 2008

Online Banking Security

Banks today are increasingly getting introduced to a number of security threats. The ones in headlines have been Phishing, Key Logging and Man-in-the-Middle. We will find a number of online banking users who are naïve to this kind of technology and the threats associated with it. It is necessary to help them understand the precautions they must take to prevent being a victim of online theft.

Consumer education becomes a key element to prevent the manifestation of a number of risks into frauds. It is much easier for the experienced eyes of an internet-savvy user to detect potential phishing attempts when compared with a customer who has recently migrated from old school of banking to more recent modes.

On a happy note, there are solutions in the market to tackle problems of phishing, key loggers and man-in-the-middle attacks. But these are expensive solutions and not full proof.

Business Security Buy-In: Given the customer base or other reasons, it has not been easy for the banks to justify investing in secure solutions for online banking. In fact, many banks are willing to compensate for the fraud losses of the customers as they find it more cost effective than putting up a secure solution.

Security Challenges: Banks have to continuously evaluate the risks, cost of technology solutions and even upgradations. .It gets all the more challenging due to a variety of technological solutions available in the market, each addressing individual problems but none offering a one-stop solution.


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