Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Internet Banking Can Be As Safe As Other Banking

March 11, 2005

Internet Banking Can Be As Safe As Other Forms Of Banking

Statement made by Clayton Wakefield, Head of Technology, Operations and Cards

Minimising the risk of Internet banking will always be a shared responsibility between the customer and their bank. It is no different for Internet banking than it is for any other form of banking, such as using ATMs, credit cards or cheques.

Customers’ responsibilities when banking online include ensuring the computer they use has appropriate security measures, not disclosing usernames and passwords, and avoiding clicking on links with an unknown origin. For its part ASB Bank and BankDirect provide world class Internet security systems.

People who use Internet banking are particularly vulnerable when accessing accounts from third party computers, such as those found in Internet cafes, where they have no assurance that the correct protection is in place.

Internet banking is as safe as any other form banking if customers adopt sensible precautions. Heightened media interest in online banking security has raised a number of concerns for the general public this week. The specific issue regards the risk of criminals gathering information such as online banking usernames and passwords using key logging software.

People who undertake these activities are committing fraud which is a criminal offence. ASB Bank and BankDirect liaise closely with the New Zealand Police E-Crime Laboratory in pursuing the sophisticated criminals who attempt to defraud people online.

ASB Bank and BankDirect have led the way in raising the bar for Internet banking security with Netcode - a two factor authentication security solution. Two factor authentication requires two independent forms of technology to verify a customer is who they say they are - one form they know, like a password, and one they have, such as a mobile phone. It is a similar to using an ATM, where you know your password and carry your card.

Registered Netcode users are texted a code when they carry out applicable pay away transactions, which they must enter online to validate their identification. Netcode was developed with RSA Security, a global expert in this type of technology, and with the endorsement of the New Zealand Police E-Crime Laboratory.

More

Since the launch in December 2004 over 19,000 customers have registered for Netcode. Our experience is very positive and we believe we have achieved a balance between the current risk of fraud, the cost of the service and inconvenience of providing an additional step in the online banking process. The reaction from customers and appetite for this type of solution has been excellent, so much so that we are trialing additional security systems as a complement to Netcode.

There are a host of tactics used by criminals, usually based overseas, to attempt to defraud customers which include phishing, Trojan horses, viruses and worms. ASB Bank and BankDirect are proactive in developing measures to reduce the risk to customers. Importantly though, customers themselves have a role to play in protecting their assets, just as they would walking down the street with their purse or wallet.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

'Visionary' Leaders: Primary Sector Council Announced

A group of visionary agribusiness leaders is set to help our primary sector capture more value from its work, Minister of Agriculture and Rural Communities Damien O’Connor says ... More>>

ALSO:

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:

Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO: