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Kaspersky Research Shows One in Four Banks Have Difficulty Verifying Customer Identities When Online Banking
Posted: Thu May 04, 2017 03:47:24 PM
 

Kaspersky

According to Kaspersky Lab’s latest Financial Institutions Security Risks survey, 24 percent of banks worldwide struggle with the identification of their customers when delivering digital and online banking services.

Woburn, MA – May 4, 2017 - According to Kaspersky Lab's latest Financial Institutions Security Risks survey, 24 percent of banks worldwide struggle with the identification of their customers when delivering digital and online banking services. As more than half of banks (59%) anticipate growing financial losses due to fraud in the next three years, the verification of a user’s identity should be taking central stage in the cybersecurity strategies of financial institutions.

With the rise of online and mobile banking, customers are not only becoming victims of financial fraud, but also a major entry point for attacks on banks’ digital channels. According to the research, in 2016, 30 percent of banks have had security incidents affecting banking services delivered via the internet — with phishing against customers, and using customer credentials for fraudulent activities, as the top contributing factor leading to the attacks.

Banks find themselves in need of security technologies that do not undermine the customer experience – 38 percent of the organizations surveyed confirm that balancing prevention techniques and customer convenience is one of their specific concerns.

“While thinking of different approaches to secure digital and mobile channels, banks naturally avoid putting too much pressure on customers,” said Alexander Ermakovich, head of fraud prevention at Kaspersky Lab. “Online banking should preserve its main benefits: as a convenient way of making financial transactions in seconds. That is why we are working on technologies that help to protect both banks and their customers without adding an extra security routine to the user’s experience.”

In addition to two-factor authentication and other security procedures used by banks, Kaspersky Lab recommends implementing dedicated solutions that can help to identify whether a person is authorized to access the account, without requiring additional actions from the user. A platform that provides protection not only at the stage of login, but also during the session itself, without requiring extra authorization stages for customers to pass through, is the best security option.

For more information about the research, please visit: https://business.kaspersky.com/how-the-financial-industry-reacts-to-cyberthreats/6610.

 
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