#275750 by TerranceBoyce
Sat Nov 21, 2015 9:23 am
http://www.theguardian.com/money/2015/nov/21/safe-internet-banking-cyber-security-online?
An interesting article that makes some valid points that are crucial for people to realise, though I do myself use online banking, but I am scrupulously careful. Also as a retired member of bank staff my account is held separate from other accounts, which I believe gives me greater protection, though that's not why it's done.
One of the most insightful articles about UK banking that I have read. The other problem area is the opening of accounts which is currently being exploited by criminals to perform thousands of frauds daily, some of which are against the banks themselves. Europe is awash with fake passports and ID's, many used by terrorists (only highlighting the risk this fraud poses to society in general) and it is going to be inevitable that opening a bank account should require the taking of the account holders' fingerprints. At least that way the banks can clamp down on those individually engaged professionally in bank account fraud. As long as banks aren't the losers there is no incentive for them to tighten up their security.
Underlying this the legal obligation on banks not to hold accounts used in crime/terrorism seems to be rendered ineffective by their simple confirmation that they followed procedures which everyone knows are feebly ineffective.
In Europe we are now in a new world and banks must be encouraged to join the rest of us. Providing an insecure banking and payment service is not acceptable for customers or indeed the country within which they operate.
Every victim of the fake car ads I concentrate on is a victim of this weakness in the banking system (though that is only a fraction of the criminal uses these bank accounts are put to) and they pose a serious risk to the car dealers whose accounts are hacked.
An interesting article that makes some valid points that are crucial for people to realise, though I do myself use online banking, but I am scrupulously careful. Also as a retired member of bank staff my account is held separate from other accounts, which I believe gives me greater protection, though that's not why it's done.
21 November 2015
He is one of Britain’s foremost experts on cyber security, a man who has spent 30 years following the development of first telephone, and then online, banking. The professor of security engineering at the University of Cambridge’s computer laboratory has witnessed the mass take up of online banking, and more recently the explosion in fraudulent activity.
So when Ross Anderson says he has never banked online – and has no plans to do so primarily because the customers carry the risks of fraud – the rest of us might want to take notice.
Until recently it would have been unthinkable to suggest consumers should consider ditching online banking, so much a part of the financial world has it become. But online bank fraud is the UK’s fastest growing area of crime – doubling from £60m in 2014 to an expected total beyond £130m this year – and the losses to consumers have in some cases been of the life-changing order of £90,000 each.
Crucially, and contrary to what you will find in the banks’ marketing materials, if you fall victim to an online fraud the chances are you will never see your money again.
According to Anderson and other security experts, one of the banks’ most extraordinary feats of recent years has been their ability to shift liability away from themselves and on to the customer – aided by a Financial Ombudsman Service (FOS) that they claim rarely challenges the banks following a fraud.
On top of antiquated banking and phone systems, the introduction of faster payments has greatly aided the fraudsters ability to scam people, most of who would not have lost out if they didn’t bank online
Emery says the other crucial loophole that must be closed is the “account name”. Many people believe that if an account name is their name then a transfer is safe, but it is not. Banks do not match account names with account details, a loophole used by fraudsters to con people into shifting money into another account they believe is theirs. As Guardian Money revealed following a spate of complaints, you can put Mickey Mouse into an online transfer and the money will still be moved into the account.
One of the most insightful articles about UK banking that I have read. The other problem area is the opening of accounts which is currently being exploited by criminals to perform thousands of frauds daily, some of which are against the banks themselves. Europe is awash with fake passports and ID's, many used by terrorists (only highlighting the risk this fraud poses to society in general) and it is going to be inevitable that opening a bank account should require the taking of the account holders' fingerprints. At least that way the banks can clamp down on those individually engaged professionally in bank account fraud. As long as banks aren't the losers there is no incentive for them to tighten up their security.
Underlying this the legal obligation on banks not to hold accounts used in crime/terrorism seems to be rendered ineffective by their simple confirmation that they followed procedures which everyone knows are feebly ineffective.
In Europe we are now in a new world and banks must be encouraged to join the rest of us. Providing an insecure banking and payment service is not acceptable for customers or indeed the country within which they operate.
Every victim of the fake car ads I concentrate on is a victim of this weakness in the banking system (though that is only a fraction of the criminal uses these bank accounts are put to) and they pose a serious risk to the car dealers whose accounts are hacked.
CAR ADVERTS - If a car seller mentions escrow - he's scamming you Never ever for any reason pay anything until you have seen and inspected the vehicle
