One in four banks struggle to identify customers online


Around a quarter of banks are struggling to identify their customers when delivering digital and online banking services, according to Kaspersky Lab.

The latest findings from its Financial Institutions Security Risks survey show that 38 percent of financial institutions surveyed confirm that balancing prevention techniques and customer convenience is one of their specific concerns.

Growth in online and mobile banking means 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 percent of banks suffered 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. In addition, more than half (59 percent) say they anticipate growing financial losses due to fraud in the next three years.

"While thinking of different approaches to secure digital and mobile channels, banks naturally avoid putting too much pressure on customers," says Alexander Ermakovich, head of fraud prevention at Kaspersky Lab. "Online banking should preserve its main benefits: as a convenient way of making financial transactions in seconds. That is why we are working on technologies that help to protect both banks and their customers without adding an extra security routine to the user's experience."

Kaspersky recommends banks implement dedicated solutions to help identify whether a person is authorized to access an account, without requiring additional actions from the user. A platform that provides protection not only at login, but also during the session itself, without requiring extra authorization stages for customers to pass through, is the best security option.

More information on the research is available on the Kaspersky Lab site.

Photo credit: Oleksiy Mark / Shutterstock

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