Financial services offer rubbish security

BouncerFoxFeatureKaspersky Lab and B2B International have worked out that a third of financial services don’t offer customers a secure channel for all their online payments.

This is despite the fact that 62 percent of these organisations have noticed a significant rise in their customers making financial transactions online, and 50 per cent believe online financial fraud is increasing.

The survey found that many banks and payment companies are struggling to fully protect themselves and their customers from financial fraud at a time when customers are using an ever-wider range of devices to conduct a growing number of financial transactions online.

Two-thirds say that customers are increasingly using different devices to make online payments, yet just half have implemented two-factor authentication and only a half  have introduced a specialised, real-time anti-fraud solution.  This is despite the fact that 22 percent believe this is the most effective form of protection available.About 42 percent extend such a solution to customer devices and only 67 per cent implement a secure connection for all online payments.

About half admit that they are only mitigating risk rather than removing it altogether and 29 percent say it is cheaper to deal with online financial fraud incidents as they arise rather than to try to prevent them from happening.

Kirill Slavin, general manager UK and Ireland, Kaspersky Lab said that the study shows that banks and payment organisations are finding it difficult to manage online financial fraud in today’s connected, omni-channel consumer landscape.

“About 38 percent of the organisations we spoke to admit that it is increasingly difficult to tell whether a transaction is fraudulent or genuine, with a worrying one in three opting for a ‘we’ll deal with it as it happens’ approach to fraud protection,” he said.

“If you consider that our own research uncovered 22.9 million financial malware attacks in 2014, targeting 2.7 million customers worldwide, it is clear that dealing with each incident individually is not a viable, long-term option. Customers deserve better and so do the financial services,” Slavin said.

The study found that general Internet-security software solutions are not widely regarded as an effective method for preventing the increasingly well-disguised phishing and malware attacks that can lead to financial fraud. Less than ten percent of respondents favoured this option.

The IT Security Risks Survey 2015, conducted by Kaspersky Lab and B2B International, involved more than 5,000 company representatives, including 131 banks’ and payment services’ representatives, from 26 countries.

[That’s enough percents, Nick. Ed.]