Online banking: Security is a necessity and not a differentiator

As Online Security Week begins, First National Bank (FNB) is stressing that online security for banking is not a competitive differentiator, but an imperative for all banks and their customers. As such, various financial institutions in the country work to develop an environment that is safe for every customer who transacts online.

"The banks in SA work closely together to ensure the online banking environment is safe for all consumers. The provision of appropriate banking solutions over the Internet demands security as a prerequisite to protect our customers as well as the reputation of online banking as a viable and safe channel for transacting," says Roland le Sueur, Head of FNB Internet Banking.

Le Sueur explains that fraudsters are always on the lookout for ways to target unsuspecting consumers - and, because the banks have industrial-grade security solutions in place to protect their systems, it is usually the consumer who is targeted as the weak link in the Internet banking chain.

Malicious individuals can use many methods to get customer details, says Le Sueur. Some of these are hi-tech and automated, such as the use of software programs downloaded off the Internet which can scan for passwords and details, the so-called `phishing` scams where customers are duped into providing their login details, or Trojans, which are programs that masquerade as a harmless or fun item, but install keyloggers or other spying software.

"There is also the threat of hacking or cracking, where the fraudster will use computer skills to take over a targeted PC and steal information from it," he adds.

Despite these threats, Le Sueur stresses that Internet banking remains a highly effective and safe means of managing finances. "Far from being risky, Internet banking is, in fact, extremely safe. All the major banks in SA that offer online services continually work to educate users to make them aware of the risks, as well as providing advice on how to protect themselves against any compromise," he says.