• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Security Features in Online Banking Systems Should Be Improved, Says New Report From Corporate Insight

Posted on: Wednesday, 22 February 2006, 09:00 CST

Banks offering online banking services to their retail customers need to beef up their security features, especially in light of the FFIEC's 2006 mandate, says a new report from Corporate Insight. Consumers are also apprehensive about security. In a survey of 1,100 online banking users conducted by the firm in the third quarter of 2005, nearly 80% of all respondents said they were concerned about the issue of security. Of the fourteen institutions that Corporate Insight follows, only three provide their clients with additional verification or security methods beyond the traditional login and password requirements. In addition, research uncovered a wide discrepancy in the amount and type of alerts that banks offer to notify customers of account activity that may be suspicious in nature.

"Despite the fact that phishing and other hacker related activities have inched their way into the online banking environment, banks have been hesitant to introduce security measures that place too many restrictions on their account holders," said Stephanie O'Connor, Senior Analyst, Bank Monitor at Corporate Insight. "Many have relied on existing alert capabilities and password requirements to protect their clients but ultimately, the future of online security will be a mastered balancing act - online banking firms must find a way to protect their clients against fraud without inconveniencing them."

"Online Security: Log in at Your Own Risk" is an in-depth look at online security capabilities at fourteen financial institutions and includes detailed findings of each firm's offerings. In addition, Corporate Insight makes specific recommendations on how to enhance online security.

For more information on this report, please visit www.corporateinsight.com.

About Corporate Insight

Corporate Insight is a leading provider of competitive intelligence, analysis, and consulting services to the financial services industry. Founded in 1992, the firm has a blue-chip client base of industry leaders who rely on the company's commentary and insight gleaned through years of research examining the issues and trends that have shaped the industry. CI monitors the top firms on an ongoing basis, measuring, analyzing, and communicating industry best practices. Its products include Bank Monitor, Broker Monitor, Credit Card Monitor, e-Monitor, Mutual Fund Monitor, and Mutual Fund Advisor Monitor, as well as custom project work. For more information, please visit www.corporateinsight.com.

Source: Business Wire

More News in this Category