Most adults who bank online believe the security threat has increased since they signed up to the service

(02/01/2009)

According to recent figures from APACS, online banking fraud rose 185% during the six months to June 2008 compared to the same period last year and was largely attributed to criminals targeting online banking customers through phishing and spyware scams.

According to a XIRING survey, 62% of UK adults who bank online believe the security threat has increased since they signed up to the service. Yet when asked what would make them feel most confident of improved security, 21% responded that being asked an extra security question would be the best option. This finding highlights the extent to which online banking users still need to be educated on the fallibility of static passwords and how to better protect themselves when conducting their e-banking activities.

Answering an extra security question does not however protect against these type of attacks. While 54% of people questioned admitted that they were aware of the scare stories about e-banking at the time of signing up for the service, they were convinced that their bank would fully secure their online banking facility. What’s more, 12% admitted that they ‘didn’t consider there to be a security or identity theft threat’ at all at the time of signing up.

Yet, whilst people believe security has become more of a problem, with nearly a third (31%) having either been a victim of online fraud themselves or through a family member, only 10% say that this experience has affected their online banking habits. Although, surprisingly, it seems that the young are more affected than the older generation with 33% of 18-25 year olds saying it has affected the frequency with which they bank online, while 46-55 year olds claim to be completely unaffected. In order to enhance their security, 32% would feel most confident using a smart card reader to add an extra layer of security to their online banking, compared to only 5% wanting to use their mobile phone.

Online banking does, however, have a better image than e-commerce, with 74% believing that online shopping is less secure than online banking. And, if people have been a victim of fraud when shopping online or know a family member who has, it is more likely to affect their e-commerce habits with 22% admitting that it has affected the frequency with which they shop online, compared to only 10% for e-banking.

The main findings from the survey include:

· Women are more trustworthy of their banks than men with 59% believing that their bank would protect them from online banking fraud at the time of signing up, compared to just 48% of men

· Age-wise, the 46-55 age bracket is most trustworthy with 62% believing their bank would protect them, compared to only 46% of 18-25 year olds

· Similarly, young people are more likely to be put off shopping online having been a victim of fraud with 33% of 18-25 year olds saying it has affected the frequency with which they shop online compared to only 12% of 46-55 year olds

· 84% think their bank should have ultimate responsibility for online banking security (rather than users taking personal responsibility)

· 40% said they would bank and shop online more if they felt more secure, although 46% of women agreed compared to only 34% of men

Laurent Maitre, Marketing director at XIRING, commented on the findings: “It is heartening to know that UK e-banking users are aware of the security risks involved with banking online. However, it is worrying that a good proportion of users think that by answering an extra personal question, it will improve their security and protect them against phishing attacks. With attacks clearly on the rise, it is essential that all online banking users look to add an extra layer of security to their online transactions through a dynamic password solution. We are happy to see that the preferred way is Home Chip & PIN, thus confirming the choice of several major Financial Groups in the UK.”

Related topics:  Authentication and identity management   Internet and Web security   Mobile and Wireless Security 

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