The arrival of the Internet has led most banks to use this channel to provide customers with easier and more convenient banking solutions. However, while paying bills and managing your accounts is much faster on the Internet, users need to take security precautions.
Chris Kotz'e, CEO of First National Bank (FNB) eSolutions, says the Internet has brought phenomenal change to the banking environment.
"Without doubt, the Internet has been one of the biggest developments that the banking world has seen since the introduction of automated teller machines (ATMs) in the early 1980s. But it has introduced new risks for both the customer and the bank," he adds.
While the attention given to Internet fraud has focused on what security measures banks can implement, Kotz'e points out that clients also have a role to play to ensure the security of their banking transactions.
Compared to `traditional` banking, Kotz'e notes: "There is a dual responsibility for combating fraud and clients need to be aware that they can take measures to help prevent Internet fraud. Should I leave my chequebook or credit card lying around for anyone to steal, there will be no surprise if fraudulent transactions are made on my account. In this scenario, the bank`s safety measures have failed to protect me as I have not been vigilant in protecting my card. The same responsibility rests with the Internet banking client."
As with other banking access points, Kotz'e says precautions taken by the bank such as encryption of data, user identification through user password verification and digital certificates must be supported by necessary safety measures by the customer to ensure reliable security.
In the business environment, he recommends that, where possible, the banking PC should be a standalone machine specifically reserved for banking. "Whether or not this is the case, PCs used for Internet banking that can be accessed by several persons should be regularly inspected for new devices and any suspicious activity."
He urges medium to large businesses to institute security policies, as these make sure that management considers the risks and acts accordingly. In addition, ongoing inspections and risk assessments should be conducted to examine users on the system and their behaviour.
"Ideally employees should only be given access to those functions required to perform their jobs. Those users who have access to banking and financials should be monitored closely with regular checks for early identification of anything out of the ordinary that might indicate fraudulent activity," explains Kotz'e.
Businesses should always be on the lookout for suspicious behaviour among employees working in sensitive areas such as banking. Ensure two individuals are responsible for sensitive tasks; be cognisant of situations where a single employee is responsible for financial transactions, especially if that employee never goes on leave.
Individuals should treat Internet banking as they would other banking channels, such as the ATM - while the method has changed, the rules are the same. "The best way to avoid fraud is to be aware that it does happen - and then to take the necessary steps to make sure that it doesn`t.
"Your password, like your PIN number, should always be protected and secret. It is best to have an alphanumeric password - that is a password including both numbers and letters - as there are tools on the Internet that can help fraudsters to guess the easiest passwords. Security software is essential and must always be up to date and scanned regularly," Kotz'e concludes.
Customers who suspect that fraud is taking place - or has already taken place - on their account should download the details from the system as soon as possible and report it to the bank, keeping a copy for themselves.
If you would like further information on how to protect yourself against Internet fraud, please contact your nearest FNB branch, phone the eSolutions Call Centre on 0860 101 207 or visit the FNB Web site, www.fnb.co.za, and click on the `Business` icon in the toolbar.
FNB is a division of FirstRand Bank (Ltd) and is an authorised financial services provider.
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