March 2009
Banks need to take identity management steps online

It is essential for banks to face up to the problems with card reader fraud.

It is essential for banks to face up to the problems with card reader fraud (‘Card readers not so secure’, March 9, 2009). Malware and phishing attackers can easily monitor and hack into online banking activity, so banks and their customers must acknowledge and address the risks. End users just need a little education on how to spot suspicious behaviour. Some attacks are obvious, even to the untrained eye, but everyone needs to be aware of what clues to look out for.

Authentication via SMS allows users to be sent passcodes, as well as tips on how to log on safely. It’s also possible for end users to be alerted via mobile phone when people try to authenticate on their behalf. Such technology is a step in the right direction for online banking. When it comes to remote authentication, banks need to be sure that people are who they say they are when logging on, using technology as an additional layer of security if necessary. If they don’t know this, they should be prepared to face the consequences.

Andy Kemshall
Co-founder of SecurEnvoy