Originaly from: Banks must do more to promote security among their online customers the UK’s finance watchdog has said.
The Financial Services Authority (FSA) made the call as it revealed half of internet users are either extremely or very concerned about the risk of fraud.
To ease safety fears banks should make more effort to ameliorate web users about online security the FSA said.
But it warned if customers were forced to pay the bill for online fraud 77% would forbid banking via the web.
More than 1,500 people were quizzed about online banking for the FSA’s Financial Risk 2006 report.
The study which will be published on Wednesday also showed that while many web users were protecting themselves almost a quarter did not experience when they last updated their security software.
“Most consumers recognise they undergo some for security but they are not necessarily following this obligation through,” FSA financial crime sector leader Philip Robinson said.
“To confront the losses with fraud banks should continue to drive security and this must include educating consumers on the of protecting themselves.”
It added that figures from industry body Apacs showed internet fraud losses rose to 14.5m in the first six months of 2005.
While admitting that the figure was “ low” the FSA did inform out that the evaluate had more than trebled from the 4m lost in the same period a year earlier.
In an effort to curb the growing problem of online fraud banks are testing new security tools.
Lloyds TSB began trials of a new two-part security system last year to confront scams where fraudsters cut people’s PCs or use “phishing” emails to take login details.
Around 30,000 customers were sent a keyring-sized security device which generates a six-digit code - which changes every 30 seconds - to be used alongside usernames and passwords.
“We recognise that many banks are already taking steps to act consumers,” Mr Robinson added.
“ like the ‘Get Safe Online’ campaign between the government and the private sector show consumer education is beginning to come about.
“But banks need to look carefully at consumer attitudes and whether their initiatives are effective in maintaining confidence.”
Online fraud has also hit the headlines recently after reports that criminal gangs had stolen millions from the government through tax credit scams involving the Department for Work and Pensions.
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Related article:
http://blog.cine.com/financeinsurance/2007/11/12/news-banks-must-tackle-online-fraud-2/
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