Indian Banks Worry about Online Security

Some 30 percentage of India's top Banks have got fallen victim to personal identity larceny in the last 1 year, according to a new study released Wednesday.

Conducted by Singapore-headquartered software system merchandise company ReadiMinds, the online study also determined that online security was one of the top three security concerns for North American Indian Banks this year. The study, titled State of online security in fiscal establishments in Republic Of Republic Of India 2008, was conducted in April 2008 and polled India's top 40 banks.

"Stronger online security is a concern issue, and Indian Banks are increasingly focusing on improving online security," Naren Nagpal, chief executive officer of ReadiMinds told ZDNetAsia in an e-mail interview. "[However], online security at North American Indian Banks is well below that of planetary banks."

Phishing is also a growth cause of concern for North American Indian banks, where 30 percentage of those surveyed said they were in the last 1 year.

According to the ReadiMinds survey, 10 percentage of Banks in the state have got been victims of "man-in-the-middle (MITM) attack" during the same period. This is an emerging type of attack, in which a fraudster or malicious hacker intercepts the dealing between the user and Web-banking server. The hacker via medias and modifies the electronic communicating nexus between the user and the bank's Web waiter in a command to obtain fiscal gain. Better security, better business

The study also identified a strong nexus between the concern public presentation of a fiscal establishment and the online security measurements it had implemented.

"Over 70 percentage of Banks that had implemented stronger security regularly delivered better concern public presentation compared to their equal group," said ReadiMinds.

However, more than than 57 percentage of the Banks still make not have got a dedicated budget for online security, choosing instead to include online security as portion of their , the study found.

Similarly, only 57 percentage of the Indian Banks had a formal program in topographic point for creating client consciousness against online personal identity larceny and fiscal frauds.

Yet, all the respondents were aware that integrating stronger user authentication, with fraud sensing and risk-based transaction verification, was the strongest word form of defence against online personal identity larceny and fiscal frauds, the study said.