Financial institutions need to be aware that in the midst of this banking crisis, consumers are unusually sensitive to fees and are prone to switching banks.





Seven years of Javelin consumer survey data underscore the necessity of designing banking products and services to serve the customers’ craving for financial control, as 8 out of 10 online households now bank online. The industry has made laudable strides in bringing customers to their Web sites to bank and pay bills.

For the first time, slightly more consumers paid at bank sites than at biller-direct sites. Yet many banks and credit unions
have been slow to upgrade, creating a wide gap in online capabilities and usage between the nation’s four biggest banks – Bank of America, Citi, JPMorgan Chase and Wells Fargo – and smaller regional, community banks and credit unions.

Primary Questions

• How fast will online banking and bill-pay adoption grow over the next five years?
• How active are users of online-banking and bill-pay services?
• Can banks use online-banking and bill-pay services to boost revenues, increase customer loyalty, reduce costs and create cross-selling opportunities?

• Can mid-size banks and credit unions boost the performance of their online-banking services to better compete with giant national financial institutions?

Editor's Note: I can answer that question.  Yes. (want more detail?  See answer to next question)

• What services can make online banking more appealing to consumers?
Editor's Note:  Want to make online banking more appealing to consumers?  Appeal to their peace of mind.  Provide a PCI 2.x Certified Two Factor 3DES DUKPT Beginning to End Encryption Platform powered by HomeATM.  Guarantee your customers that your bank will eliminate phishing and the increasing threats caused by Malware,  Cloned Bank Websites and more.  It WILL provide your banking institution with an enhanced image, and lure wary online banking customers who are looking to make the switch.  


 

Related articles

• Online Banking's Innate Security Flaws (Information-Security-Resources.com, by John  B. Frank)
• 3DES, DUKPT & E2EE Explained (information-security-resources.com by John B. Frank)
  
• Nothing Phishy About PCI 2.0 Certified "Card Present 2FA" (pindebit.blogspot.com)
• BofA Targeted by Malicious Code Phishing Attack (pindebit.blogspot.com)
• If "Https://" is Really "Httbs//" Then How Do You Secure Online Transactions? (pindebit.blogspot.com)
• Cybercrime (pindebit.blogspot.com)
• Online Theft Doubles...Fastenating! (pindebit.blogspot.com)
• Wells Fargo Introduces Online, Same Day Bill Payment (paymentsnews.com)

BANKS and bank customers face anarray of threats to their security as international criminal groupsroll out a new generation of viruses, malware, fake websites andsophisticated phishing emails.

Internet banking experts say without co-ordinated global action by governments, financial institutions will have to "give up on the internet" because they are losing their war against hackers and criminal fraudsters.

Editor's Note:  That's what I've been sayingfor the last 15 months on this blog.  It was (not safe) safer to typeyour card numbers into a box at a merchant checkout center a year agothan it is today and it's (not safe) safer to do it today than it willbe tomorrow. 

It's satisfying to see "Internet Banking Experts" start to to publicly admit there is an inherent weakness in the system. 

HomeATM'sdevice (pictured above) is a secure solution to the phishing, DNSattack and cloned web site threats which permeate the online bankingworld.  Our solution exactly replicates how one would access their cashat an ATM.   1. You swipe your card, and 2. You Enter your PIN.  It'scalled 2FA (two-factor-authentication)and it would virtually eliminate phishing overnight.  The Track 2 datais "instantaneously" encrypted upon the swipe of the card and the PINis also 3DES Encrypted and protected by DUKPT (Derived Unique Key Per Transaction). Our unique end-to-end encryption methodology provides the most secureauthentication and payment application available today. Period. 

Early next week, HomeATM expects to become the only eCommercePayment company in either hemisphere to be both PCI 2.x Certified andTG-3 certified.  Swipe don't Type.  It's how retailers and consumershave been doing it at brick and mortar locations since the early 80'sand it's how it should be done online.  Until now, there wasn't anaffordable way to get consumers there very own SwipePIN device.  ButHomeATM has gotten the price down to the point that banks couldliterally give them away...thus empowering their online bankingcustomers to not only log-in securely but pay bills in real-time, sendor receive money in real-time and conduct safe, secure onlinetransactions.  I've stated that it is as simple as 1-2-3.  Two arealready done.  The bank issues the card, the bank issue the PIN...nowthe bank can issue the HomeATM Internet POS terminal.   The storycontinues... 

Almost one-quarter of the entire Australian population has beenaffected by identity theft crimes, according to a recent survey by VedaAdvantage and that number keeps growing each year.   "Last yearsome 450,000 Australians were the victims of fraud," NSWAttorney-General John Hatzistergos said last weekend as he announcednew laws that effectively duplicate Queensland's cyber crime laws.

"Nearly a billion dollars was taken from people and confiscatedby criminals, using a variety of different techniques, trading inpeople's personal information, such as passwords, pin numbers, namesand addresses.

The state based approach to the problem will not work says ProfessorBill Caelli from Queensland University of technology's InformationSecurity Institute. Prof Caelli says only co-ordinated global action bygovernments can secure the net.

Speaking to the Sunday Mail from amajor IT conference in Paris where the issue of securing the net ishigh on the agenda, Prof Caelli claimed "banks were simply not capable of providing secure internet banking."

There is a big discussion happening globally about web services such as internet banking. The question is, "Can you create large-scale secure transaction systems on the web – and the answer is coming back as no."

Already thisyear, two of Australia's biggest banks have reported significantattacks on their internet banking portals. Both attacks came aftersignificant investments by the banks to upgrade their online bankingplatforms.

"The criminals tend to target one bank and when that institution shutsthem down they move to another bank so it goes in circles," said GaryGill, head of forensics at KPMG.

Australia's biggest bank, the Commonwealth Bank, reported that amalicious attack had probably contributed to its banking website,Netbank, crashing on the busiest days of the year – the two days beforethe end of the financial year.

Steve Batten, the media spokesman for the Commonwealth Bank, said thatNetbank was designed to handle 13,000 customers online concurrently.  Last Monday, 18,500 customers were logging in concurrently and 1.59million hits were registered in the 24-hour period.  Mr Batten saidthat the bank suspected that some of that traffic was malicious.

In February ANZ Bank reported a sophisticated scam that led to a fakeweb page appearing to customers after they logged in to the ANZinternet banking site.