"The country's biggest banks are all encouraging their customers to use online services, however many banks here lag behind in the security they offer to their online banking customers," said Mr Heath.
Overseas, consumer legislation and the growing number of phishing attacks has motivated many European banks to improve their security measures. Interpol has found that countries which have better protected online industries are significantly less likely to be targeted.
"Unless banks in New Zealand step up the security they offer their online banking customers, it is possible we will see more and more fraudsters targeting New Zealanders," said Mr Heath.
RaboPlus.co.nz, the online savings and investment proposition from Rabobank, is the only online banking service in New Zealand that offers a three-pronged approach to protecting its customers: two-factor authentication plus digital signatures. In addition, it offers these for free to all of its customers, not just its business customers.
Mr Heath said all other banks should offer their customers the same level of security.
"Many of our customers invest their life savings with us. We take that very seriously, and that's why we offer our customers the best security available. Other banks should do the same," he says.
Two-factor authentication requires customers to provide two forms of identification before they can log-on, or conduct any transaction. The first identification step is based on something users already know (their access code and password), followed by a second step based on something that is randomly generated, such as an additional security code.
RaboPlus.co.nz provides all customers with a free Digipass (which looks a bit like a small calculator), to generate a unique, random code every 36 seconds. Customers use this unique code together with their customer number and pin when logging on and conducting transactions online. Some banks charge for this service.
RaboPlus.co.nz also attaches digital signatures to every transaction to protect customers from a new type of fraud (known as Man in the Middle) where fraudsters intercept and change a transaction.
No other bank in New Zealand has the digital signature step in place for its retail customers, leaving consumers open to these types of attacks.
Rabobank Australia & New Zealand is a part of the international Rabobank Group, the world's leading specialist in food and agribusiness banking. Rabobank has more than 100 years' experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank has a AAA credit rating and is rated one of the world's safest banks by Global Finance magazine. Rabobank operates in 43 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1500 offices and branches. Rabobank Australia & New Zealand is one of Australasia's leading rural lenders and a significant provider of business and corporate banking and financial services to the region's food and agribusiness sector. The bank has 75 branches throughout Australasia.