The Financial Services Authority is encouraging banks to work with customers to fight a rise in online banking fraud that cost the industry GBP14.5 million in the first six months of 2005. Losses have more than trebled since the same period in 2004 (GBP4 million), and consumer confidence in online banking is not high.
Half of active internet users said in the survey they were ‘extremely’ or ‘very’ concerned about the potential fraud risk of making an online transaction. Nearly all users (95%) surveyed believe that at least some security responsibility should lie with the bank, while 45% believe banks should take sole responsibility. Most users (77%) would switch to an alternative method of banking if their bank shifted all responsibility for these losses onto the customer.
Philip Robinson, financial crime sector leader at the FSA, said, Most consumers recognize they have some responsibility for security but they are not necessarily following this obligation through. To tackle the losses associated with fraud, banks should continue to drive security and this must include educating consumers on the importance of protecting themselves.
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