While businesses and consumers alike are attracted by the flexibility of online banking, it should be noted that this great tool carries inherent security risks. Consider that FBI Director, Robert Mueller, recently announced that he had been banned by his wife from using his online banking service after he nearly became the victim of a phishing scam.
Muller's wife was probably right to be concerned. Australian Bureau of Statistics (ABS) research found 6 million people are exposed to scams and frauds during any given year, with over 800,000 falling victim in some way. The financial losses are of major concern - with almost $1 billion in losses.
Lloyd Borrett, AVG (AU/NZ) Marketing Manager said, "The use of the Internet by cyber-criminals to mass-market fraudulent schemes is unprecedented and increasing rapidly. Given that so many of these criminal perpetrators are not within easy reach of Australian law enforcement agencies, all businesses need to be more vigilant than ever, especially while banking online."
For businesses, the threats posed by online banking may be more acute given the dangers associated with so-called "insider threats". IT security experts have long contended that a company's own staff pose a bigger criminal threat than external criminals. While this may no longer be accurate given the entry of organised criminal gangs in the mid-nineties and the resulting increasing sophistication of cyber-criminals, online banking certainly provides a new channel for these internal or external criminals to steal money or confidential information.
Recent research by AVG revealed that the number of financial transactions conducted over the Internet are on the rise, with 85 percent of people now using the Internet for shopping, and over two-thirds doing their banking online. The research also showed that fears about cyber theft are rising too, with 43 percent of those surveyed saying they felt more susceptible to cyber theft than burglary, assault or robbery.
Fears over cyber-crime are to be expected in the digital age, especially as 3 in 10 people have experienced fraudulent behaviour over the Internet, including fraudulent emails, credit card fraud, and unauthorised bank transfers. Despite these concerns, the AVG survey also revealed that approximately 30 percent of respondents did not feel they were taking adequate steps to protect themselves from fraudulent online activity.
Banks could also be doing more. For example, the use of drop-down menus as part of the log-in process can help defeat key-logging software. Criminals use this software to record key-strokes. Drop-down menus can not be recorded in this way as they are activated by the user's mouse. Other approaches include external devices sent to customers which generate unique pin-numbers each time the user accesses their account.
There is general awareness of at least some of the risks associated with online banking, and knowledge of some of the tools that can be employed to combat it. The awareness and knowledge must grow on both sides and, most importantly, once gained should not be ignored.
Read the full AVG Security Tip.