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Digital Identity, Security & Online Fraud

24 percent of banks worldwide struggle with customer identification

Monday 8 May 2017 | 09:35 AM CET

The Financial Institutions Security Risks survey by Kaspersky Lab has revealed that 24% of banks worldwide struggle with the identification of their customers when delivering digital and online banking services. 

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 % 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% of the organisations surveyed confirm that balancing prevention techniques and customer convenience is one of their specific concerns.

As 59% of banks 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, Kaspersky Lab warns.

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 authorised, without requiring additional actions from the user.

More: Link
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