Packaged Facts reports on fears for online financial services

Internet Business News, Sept 30, 2005

INTERNET BUSINESS NEWS-(C)1995-2005 M2 COMMUNICATIONS LTD

A report from Packaged Facts, a market research publisher, has revealed that the future growth of the online financial services market is threatened by consumer fears regarding fraud breaches, privacy and security.

In its 'The US Financial Services Internet Security, Privacy and Fraud Report' Packaged Facts explained that new security and fraud threats have come with the increasing growth of e-commerce, online banking and other Internet-based financial services. It claimed the threats have resulted in financial loss, consumer information loss and a growing consumer view that it is not safe to conduct online financial transactions, and looks at consumer perception.

Around USD50bn was lost in 2003 by businesses and consumers in the US to identity theft alone, according to the Federal Trade Commission. The report states that traditional methods such as single-factor authentication used to combat risks are less effective as threats, such as phishing and malware, become more sophisticated.

Packaged Facts said 2005 has seen an increase in consumer concern and advised that 70 data breaches to various financial services companies, large corporations and universities occurred from February to August, compromising 50m accounts. It said the use of biometrics, smart cards and two-factor authentication are considered as potential solutions to the problem.

The report can be purchased for USD3250 from Packaged Facts or MarketResearch.com.

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