News
News
1/25/2007
12:32 PM
Connect Directly
RSS
E-Mail
50%
50%

Consumers Want Better Online Banking Security

Consumers are ready to start using stronger authentication technologies and want their banks and brokerage houses to monitor online transactions for suspicious activity.

As trust among consumers for online banking continues to erode, users in the United States, Europe, Australia, and India are demanding stronger security for their online accounts, a poll published Thursday reported.

According to survey results, majorities of nearly 1,700 consumers in eight countries said they were ready to start using stronger authentication technologies that went beyond the traditional user name/password, wanted their banks and brokerage houses to monitor online banking transactions for suspicious activity, and were familiar with the term "phishing."

The fourth-annual online poll conducted by RSA, the security division of storage maker EMC, traced the ongoing slide in consumer trust: 82% of account holders said that they are less likely to respond to e-mail from their bank because of phishing scams. The results in 2005 and 2004 were 79% and 70%, respectively.

That apparently doesn't mean consumers are ready to abandon online banking, however. More than nine out of every 10 people surveyed said they would be willing to deal with more than just the usual user name/password authentication if it meant stronger security. The group was split almost evenly between those would be "very willing," and others who said they were "somewhat willing" if the sign-up process was "simple."

Consumers were even more divided when it came to what kind of stronger authentication they want. Nearly three out of four (73%) voted for "risk-based" authentication, which is an institution-side assessment of the user's identity based on such things as log-on location, IP address, and transaction behavior.

Forty percent claimed that they would like a hardware token for authentication; 56% said they'd accept image-based authentication, where the bank or brokerage presents an image that's been agreed upon by both the consumer and the institution. A missing or incorrect image tells the consumer he's at a bogus site, not the real online banking log-in.

One disturbing result was that only 39% of account holders said they were aware of their financial institution using some form of additional security, such as personalized images, risk-based authentication, or one-time password token.

"As awareness of identity theft and online fraud grows, people want to feel reassured that they are in fact protected," said Christopher Young, general manager of RSA's consumer group, in a statement. "While most consumers don't want to be burdened with security, they still would like to know they are secure, and as we can see, they are willing to embrace the technology."

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - September 10, 2014
A high-scale relational database? NoSQL database? Hadoop? Event-processing technology? When it comes to big data, one size doesn't fit all. Here's how to decide.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
A look at the top stories from InformationWeek.com for the week of September 7, 2014.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.