Online Banking Report Identifies Ways to Improve Security Perceptions at Financial Websites

Business Wire, July 8, 2003

Business Editors/High-Tech Writers

SEATTLE--(BUSINESS WIRE)--July 8, 2003

Financial Insite, publisher of industry newsletter Online Banking Report, just released a report on security and privacy for online financial services.

The report looks at important business and marketing issues financial executives must understand to operate a profitable online channel.

The report concludes that financial institutions have done a good job safeguarding online information thus far. However, increasingly sophisticated identity thieves and con artists threaten to undo the tenuous trust built during the past 10 years. According to Online Banking Report Editor Jim Bruene, "Overall, electronic banking security is superior to the paper-based systems it replaced. However, there are significant flaws that still need to be addressed. For example, many banks put too much faith in usernames and passwords, and need to do more to authenticate and monitor individual transactions."

In researching the report, the authors reviewed security and privacy communications at 40 large retail banks and tested username and password procedures at 14 banks and credit card issuers. The 100-page Security & Privacy report is available individually for US$395 or is included in an annual subscription to Online Banking Report.

The following topics are covered:

-- Building a trustworthy Web site

-- Communicating security precautions to customers

-- Security & privacy communications at the 40 largest online

banks in North America

-- Enlisting the support of customers to fight fraud

-- Security products and services that produce incremental fee

revenue

-- Password and username practices of 14 major banks and card

issuers

-- Recommended password and username practices

Companies mentioned: American Bank, American Express, AmSouth Bancorp, Bank of America, Bank of Montreal, Bank One, BB&T, Boeing Employees Credit Union, Capital One, Centura Bank, Charter One Bank, Chase Bank, CIBC, Citibank, Commerce Bancorp, DeepGreen Bank, Discover Card, E*TradeBank, Everbank, Fifth Third Bank, First USA Bank, FleetBoston, GeoBytes, Harris Direct, Hibernia, Huntington Bank, HSBC, ING Direct, KeyCorp, MBNA, National City Bank, Navy Federal Credit Union, NetBank, PayPal, Provident Bank, Providian, Quova, Regions Bank, Royal Bank, Schwab, ScotiaBank, SunTrust, Security First Network Bank, Security Service Federal Credit Union, Sovereign Bank, State Employees Credit Union, TD Bank, US Bank, Wachovia, Washington Mutual, WebCheck Analysis, Wells Fargo, World Savings

About Financial Insite/Online Banking Report

Former banker Jim Bruene founded Online Banking Report in 1994. The company, with clients in more than 50 countries, has published its widely read industry newsletter since April 1995. The monthly report provides in-depth analyses and recommendations for online banking executives. Recent topics include: 2003 Online Banking by the Numbers, Adding Value in ePayments, 2003/2004 Online Banking Planning Guide, and Online Mortgage & Loan Originations.

More information is available at www.onlinebankingreport.com, by email to info@onlinebankingreport.com, or by phone at (206) 517-5021.