Online banking 'still secure'
5 July 2006
Nedbank (NED) has joined the country's other major banks in assuring clients that internet banking remains secure.
However, it cautioned clients against using public terminals, especially internet cafes, for internet banking.
The statement comes in the wake of fresh reports of attacks on bank accounts by hackers.
However, the country's major banks insist online banking still is safe.
Nedbank's head of virtual channels, Maire Eltringham, said: "Internet banking is still secure - it is the security of the computers in public places that has potentially been compromised.
Sophisticated equipment
"Criminals are using sophisticated equipment like spyware or key logging devices to retrieve personal information like login information and passwords to gain access to the client's account and transfer funds.
"There is a syndicate targeting clients that do online banking, and all banking clients are vulnerable.
"Fortunately, Nedbank's internet banking security has not been breached to the extent that the some of the other banks have.
"This is possibly due to the additional security that Nedbank's internet banking service offers," said Eltringham.
According to him, payments to third-party accounts that are not pre-registered on a customer's profile require additional security by means of SMS authorisation where a unique reference number is sent to the client's cellphone before the payment can be made.
This second-level authorisation provides an additional layer of security that further protects the customer.
Eltringham said: "The additional layer of security on Nedbank's internet banking provides additional protection for clients from such syndicates.
SMS feature
"Because the SMS feature operates independently of the client's computer, it is unlikely that the once-off unique reference number can be compromised by fraudsters using key logging software.
"Nedbank's approach to internet banking aligns with best practice as described by industry experts.
"Nedbank will continue to monitor developments in the online environment with a view to anticipating new risks and introducing additional security measures for the benefit of its clients," said Eltringham.
Source: http://www.mybroadband.co.za/nephp/?m=show&id=3419
Online banking fraud on increase
30 July, 2006
As online banking gains in popularity, more and more users have fallen victim to illicit withdrawals on the Internet, in which money is taken from their accounts using passwords stolen without their knowledge.
The depositors' protection law, which came into effect in February, requires banks to compensate for damage from illegal withdrawals using stolen automated teller machine cards, but the law does not apply to such withdrawals over the Internet.
Many illegal online withdrawals are believed to remain unreported, meaning that these crimes go unpunished.
A 28-year-old man from Meguro Ward, Tokyo, who operated an Internet shopping business, was one victim.
On the morning of April 24, he received a text message on his mobile phone from his bank, confirming an online transfer of which he had no recollection. The message read, "If you can't identify this transfer, please contact our call center."
Puzzled at the message, the man called the center only to find that money from his account had been sent to people he did not know.
A center operator told him, "500,000 yen was transferred to Mr. Shogo Yamaguchi, and the same amount was paid to three accounts held by Mr. Yutaka Makino."
The man told the bank to stop any further transfer of money from his account, but it took the bank an hour to confirm the accounts to which his money had been transferred.
During that time, 2 million yen, all that remained in the account, was stolen and he was eventually forced out of business.
Believing that had the bank dealt with the matter swiftly, such devastating damage could have been avoided, the man demanded the bank compensate him for the loss.
But the bank rejected his request, saying, "Due to the terms of the contract between the bank and the man that went into effect when he opened his account, we cannot compensate for damage caused by withdrawals such as this."
Under the online banking system, users can transfer money very easily, and its convenience has resulted in a rapid increase in the number of users.
According to the Center for Financial Industry Information Systems, a Chuo Ward, Tokyo-based foundation, as of the end of March 2005, about 16.32 million online bank accounts had been opened.
Source: http://www.yomiuri.co.jp/dy/national/20060730TDY02007.htm
Theft victims wonder if online banking safe
27 July, 2006
HOW safe is online banking in China? That is a question a number of theft victims are asking.
Numerous reports of theft from online bank accounts have been heard recently, but officials from the city's economic investigation police team won't say how many thefts have been reported, or how much money has been stolen.
They also won't say if any bank has had more problems than others.
Several hundred people who say money was stolen from accounts they hold at the Industrial and Commercial Bank of China have set up an online communication network to exchange stories and tips with one another.
"The group has enrolled more than 200 members who have suffered similar thefts and hail from dozens of cities throughout the country," said a woman surnamed Chen who lost 10,000 yuan (US$1,250) from her online account.
The victims say money was transferred from their accounts to other banks around the country, an act that makes it more difficult for police to trace the missing funds.
One local woman surnamed Lu said 3,500 yuan was stolen from her online ICBC bank account a few months ago.
"I never revealed the codes to others so I wonder how the money could be stolen," Lu said.
She is one of the lucky ones. Police in Xuzhou, Jiangsu Province informed her two weeks ago that they have arrested the gang suspected of stealing her money.
"I was confirmed to be one of the victims and I am waiting for the money to be recovered," Lu said.
Officials from the Shanghai Economic Investigation General Team say people with online accounts should pick pin numbers that aren't easy to guess - don't use your birthday, change passwords regularly, and never give away personal information over the Internet.
ICBC, the country's biggest lender, is taking several steps to stop the problems.
It will begin using changing passwords for online banking in the future, a step the Bank of Communications took last year. BOC clients receive a new password to their cell phones after ever visit to the bank's Website.
Source: http://www.shanghaidaily.com/art/2006/07/27/287362/Theft_victims_wonder_if_online_banking_safe.htm
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