New business research* by Kaspersky Lab and B2B International reveals that 33% of financial services organizations don’t offer customers a secure channel for all their online payments, despite the fact that 62% have noticed a significant rise in customers making online financial transactions and 50% believe online financial fraud is increasing.
The survey found that many banks and payment companies are struggling to fully protect themselves and their customers from financial fraud at a time when customers are using an ever-wider range of devices to conduct a growing number of financial transactions online.
Two-thirds (65%) say that customers are increasingly using different devices to make online payments, yet just 53% have implemented two-factor authentication and only 50% have introduced a specialised, real-time anti-fraud solution– even though 22% believe this is the most effective form of protection available. Less than half (42%) extend such a solution to customer devices and only 67% implement a secure connection for all online payments.
Not surprisingly, 48% accept that they are only mitigating risk rather than removing it altogether; and 29% say it is cheaper to deal with online financial fraud incidents as they arise rather than to try to prevent them from happening.
“The study shows that banks and payment organizations are finding it difficult to manage online financial fraud in today’s connected, omni-channel consumer landscape. 38% of the organizations we spoke to admit that it is increasingly difficult to tell whether a transaction is fraudulent or genuine, with a worrying one in three opting for a ‘we’ll deal with it as it happens’ approach to fraud protection. If you consider that our own research uncovered 22.9 million financial malware attacks in 2014, targeting 2.7 million customers worldwide, it is clear that dealing with each incident individually is not a viable, long-term option. Customers deserve better and so does the financial services organization,” said Ross Hogan, Head of SafeMoney Business Development, Kaspersky Fraud Prevention, Kaspersky Lab.
The study found that general Internet-security software solutions are not widely regarded as an effective method for preventing the increasingly well-disguised phishing and malware attacks that can lead to financial fraud. Less than 10% of respondents favoured this option.
The preferred option is a specialist solution. Kaspersky Fraud Prevention is a comprehensive security solution designed to counter online banking fraud. It provides multi-layered protection for online and mobile banking. The main platform comprises two subsystems and one of these, a clientless engine, resides inside the bank’s infrastructure and ensures an additional layer of protection by analysing banking operations on customers’ devices.
The other subsystem is a solution for endpoints such as computers and mobile devices. Once installed on a Mac or Windows computer, Kaspersky Fraud Prevention for Endpoints checks the authenticity of websites and opens pages in protected mode to ensure all personal data is protected from theft or modification. It also ensures no malware can be loaded onto the computer. The Kaspersky Fraud Prevention SDK, in turn, allows applications secured against online fraud to be created for Android, iOS or Windows Phone platforms.
*The IT Security Risks Survey 2015, conducted by Kaspersky Lab and B2B International, involved more than 5,500 company representatives, including 131 banks’ and payment services’ representatives, from 26 countries.