Posts Tagged ‘online banking’

Consumers Speed up Card Replacement Cycle

Posted on August 11, 2017 by Laura Lam

Despite the heightened security that comes with EMV chips and tokenization, consumers remain worried about their personal data being exposed in a seemingly nonstop parade of breaches. This leads to many cardholders requesting a new card as a precaution, even if they have no evidence that they were directly affected by a particular breach. “It’s less about their cards being compromised than seeing news about a major breach at a place where they shop,” said Rob Dixon, product director at CPI Card Group.  “The customer wakes up and sees a report about a breach, and wants to have his or…

Digital Banks Take the Lead in Customer Satisfaction

Posted on July 07, 2017 by Laura Lam

Conventional wisdom once would have said consumers prefer a traditional bank with branches and humans while digital “direct” banks (those without branches) were only for rate chasers.  But the tide has apparently turned.  Consumers now rate their satisfaction with direct banks higher than traditional banks, according to a study released by J.D. Power. Direct banks scored on average 865 out of 1,000 in the consumer survey while traditional bank users scored their institutions at 824 on average. Scott Lippert, vice president/bank senior strategy officer at USAA, sees this as a side effect of society’s overall shift toward digital.  “We see…

Banks: Are There Too Many Cybersecurity Alerts?

Posted on June 27, 2017 by Laura Lam

Security alert overload, a source of frustration for bank security departments for some time, appears to have careened out of control.  A survey of bank security chiefs by the research firm Ovum documents how high the daily volume of messages about possible security incidents has grown.  Over a third (37%) of banks, it turns out, receive more than 200,000 security alerts a day. “It’s too much for humans to cope with, even at banks with the largest security teams. Adding more operators isn’t the solution, the problem needs to be solved through automation,” said Rich Baich, chief information security officer…

New “Invisible” Cyber Threat for Banks

Posted on March 07, 2017 by Laura Lam

Malicious software, the type criminals use to steal online banking login credentials from customer or employee desktops, has been getting more stealthy and effective over time, as its authors get progressively better at evading antivirus and anti-malware programs. But there’s an emerging generation of malware that’s even sneakier. It’s not only designed to escape detection, it can lurk in computer memory or a legitimate computer tool, where normal security software can’t see it.  Malicious code that runs in memory is called “fileless.”  Such attacks are increasing “because they are much harder to detect than file-based malware,” said Rick McElroy, security…

Will Banks Listen to the Voice of their Customers?

Posted on January 19, 2017 by Laura Lam

Voice recognition technology is rapidly becoming part of our culture, as Apple, Google, Amazon and Microsoft have invested heavily in their Siri, Google Assistant, Alexa and Cortana voice-based assistants.  Banks have taken notice but grapple with new challenges in trying to work with these voice assistants and securing transactions conducted through them. Some are debating whether to work with them at all. Such challenges mean that 2017 won’t be the year that voice banking takes off. Significant customer adoption of voice banking is 3-5 years away, said Emmett Higdon, director of mobile for Javelin Strategy & Research. Still, banks can’t…

Push for Faster ACH Payments Increases Bank Fraud

Posted on January 10, 2017 by Laura Lam

As of September, credit-based ACH payments are now being settled within the same day. These transactions involve one person/entity pushing money from their bank account to another person or organization, using the automated clearinghouse. Examples include direct deposit, payroll, person-to-person and vendor payments. Where before banks had 2 to 5 days to analyze suspicious transactions, now in some cases they have only 2 hours. Banks haven’t quite caught up with the shorter time frame for checking red flags, some say, and fraudsters have jumped on this opportunity. “Recently we’ve seen more evidence of incidences of ACH fraud than we have…