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Would your bank refund your money in the event of cyber theft?

Almost 50% of people believe their banks would, but is their faith misplaced?

By Duncan Macrae

More than 45% of people who manage their finances online are sure their bank will refund them if money is stolen from their online account, causing a lack of concern for cyber security a study by Kasperky Lab has revealed.

This misplaced confidence among customers has potential to impact on the business of financial organisations, who can suffer both monetary and reputational damages in the event of cyber theft.

Kaspersky Security Network data shows that Kaspersky Lab products protected around 1.9 million users from malware capable of stealing money online in 2013 – this number of financial cyber threats continues to grow.

According to Kaspersky Lab statistics, every fourth phishing (i.e., fake) web page imitates the website of a legitimate bank, online store or payment service. These fake pages are used to trick people into handing over their banking details. Meanwhile, malware authors continue to create new malicious programs capable of accessing online accounts and new ways to bypass the security tools that banks have in place.

It is not surprising that cybercriminals prefer to attack users’ computers rather than the protected IT infrastructures of banks – it is much easier to steal data from a privately-owned device. At the same time, users often ignore the risks and neglect basic security measures when using online financial services, such as online banking. The research also found that 28% of respondents do not check the authenticity of the websites where they enter their confidential information, and 34 per cent of users do not take any measures whatsoever to prevent their data from being intercepted on public Wi-Fi networks.

This apathetic approach to online personal security is linked, among other things, to the belief that banks will refund customers if any money is stolen in a cyber attack. 45% of respondents believe their bank will pay back money stolen by cybercriminals, and 57% are confident their bank has already taken all the necessary security measures.

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Theft from customer accounts has implications for the business of financial organisations – apart from the financial cost, it also affects a company’s reputation and customer loyalty. Companies use various methods to protect their clients from cyber fraud; however, practice shows that full-scale protection of online transactions can only be provided by dedicated solutions developed to address the specific nature of online financial threats. Among other things, these solutions can reduce the number of incidents that result in refunds having to be made to customers.

After assessing the demands of the market and leveraging its wealth of experience in protecting users from cyber attacks, Kaspersky Lab created the Kaspersky Fraud Prevention platform for financial and e-commerce organisations. The solution also addresses important trends in the financial market such as the use of tablets and smartphones for conducting online payments. Kaspersky Fraud Prevention supports Windows and Mac, as well as the popular Android and iOS mobile platforms. In addition to solutions that protect client devices, the platform also includes server components capable of identifying fraudulent activity, even if the customer hasn’t installed the security solution on their device.

Kaspersky Lab’s professional services are another integral part of the platform, helping companies improve their awareness of financial cyber threats and how best to combat them. The comprehensive approach to security and the tried-and-tested technologies in Kaspersky Fraud Prevention allow banks to reliably protect their customers from cybercrime and secure their reputation.

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