Security is Top Level Consumer Concern
Even though publicized online banking breaches are rare and financial institutions have made significant inroads into e-security, a study by TowerGroup shows that security fears continue to impede the public's confidence in Internet banking. The study found that:
Banks are ahead of the curve in implementing IT security measure against threats such as hackers, viruses, and network sabotage. However, consumers' fears center on their own individual assets, not bank-wide concerns.
The top 10 Internet banking sites have made poor attempts to communicate key points about their security measures. Moreover, while most online banking sites spout information about technologies such as 128-bit Security Socket Layer encryption, this kind of technical data does little to communicate broader measures in place to protect consumers.
The three areas that need to be addressed by financial institutions are: 1) education on security measures in place to protect consumer data and non-technical information on how they work; 2) consumers need to be educated about steps they themselves can take, 3) banks need to publish their indemnification policies in regards to unauthorized activity.
The report is entitled: "e-Security: Consumers' Perception Is the Bank's Reality."
Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 13, No. 5, 7/22
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