Online Banking security fears – are the banks really lagging behind?

April, 2010    
Current News

Internet Banking has been operating in Australia for over a decade and during this time the Banks have continued to roll-out more functions to continually improve the service. But, as the Banks continue developing new online products and tools, has this come at the expense of a reduced focus on user security?

In a recent article published in itnews.com, it would appear that users believe banks are lagging behind in their commitment to providing safe and secure online banking;

"Online Banking customers are worried about their financial security, but banks are lagging behind, according to a global survey of 4,500 internet users. The survey identified security as a concern for 86% percent of online banking users, compared with just 68% for users of government web sites and 64% for online health care – four out of five wanted better protection than a simple password.*"

So focusing on the domestic market, have the Australian Banks paid enough attention to user security?

Let’s take a look:

• The governing principles for the way the Australian Banks manage online fraud are contained in the Electronic Funds Transfer (EFT) Code of Conduct, which is administered by the Australian Securities Investment Commission (ASIC). The EFT code’s purpose is to protect consumers who use electronic banking and it clearly defines the banks resolution responsibilities, when an account is fraudulently used.
  In short, under the EFT code, customers are likely to have any stolen funds reimbursed by the banks, if it’s clear that the customer wasn’t responsible for the loss.
  This mandate ensures that the Australian banks take online fraud very seriously. This is clearly evident as soon as you navigate to any of the banking websites.


• Australian Banks dedicate a large portion of their online collateral to security education and awareness. This strategy is an important factor in any banks overall online security strategy as it arms customers with up to date information about the latest scams targeting the bank and importantly how customers can avoid becoming a victim of a scam.


• It is not uncommon for Banks to partner with security software providers to offer customers discounted security software for their PC. This encourages customers to install security software which helps defend against malicious software designed to steal passwords and other sensitive information.


• Within the security micro-sites, the banks primarily showcase their stronger security solutions. In the majority, the Australian Banks offer one-time-passwords delivered by SMS, or hardware tokens that generate one-time-passwords (OTP). Both of these security solutions are globally recognised as robust second factor authentication mechanisms and in Australia these solutions are generally available to both consumer and business customers.


• Once logged in to Internet Banking there are a number of general guidelines that Banks enforce to ensure further risk is minimised.
  The amount of money customers can externally transfer is capped dependant upon the customers adopted security controls, and generally any new payment requires a step-up in security. In some cases internal and external transfers are delayed to ensure the transactions can be properly risk assessed.


• Behind the scenes there are a number of sophisticated systems that Banks use to monitor online transactions and Banks invest in considerably large teams of skilled people dedicated to scrutinising each risky payment.

So, are the Australian Banks taking security seriously – should 86% of online banking users be worried?

Australian Banks invest significant time and resources into ensuring that users enjoy a safe and convenient online banking experience. Australian Banks are market leaders in this field.

It’s also very natural to worry about having ready access to one of your biggest assets – your finances. Australian Online customers have become very vigilant about online banking scams which is a healthy approach to minimizing the effectiveness of global cybercrime.

Eunexus is providing fraud solutions to many of the banks within Australia, and it is abundantly clear that online security is a concern that the Australian Banks take on board 100% of the time. Australian Banks are leading ahead, not lagging behind.

* Security fears dog online banking, by Ian Thomson, January 22, 2010 – iTnews.com.au

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