Security is always an issue
Online banking has had its fair share of negative press around fraud, phishing scams and identity theft.
Banks have to shoulder the burden of ensuring security measures are in place and educating customers about threats.
Amir Lubashevsky, director of Magix Integration, said that although the market penetration for Internet banking was still low, the technology available to provide security was top-notch.
“There are many platforms and devices in use … The bank is responsible for applying mechanisms to identify the customer, which can be tricky because attacks happen when someone poses as a legitimate customer,” Lubashevsky explained.
“Individuals are often unaware that this is happening, which makes them the weak link. You can advise customers and educate them, but you cannot control them. They will always expect the bank to cover any losses.”
Once a channel has been opened, preventing interception and rendering any stolen information useless is the main task, which can be achieved by linking the legitimate user’s device to the bank’s identification system.
“Unfortunately, risks exist within banks too — banks have to monitor not only their own customers, but their employees who have access to information. Online auditing can pick up anomalies in banking behaviour in real time and services like SMS notifications can alert customers to any unauthorised account activity in time to make an inquiry,” said Lubashevsky.
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