One out of four do not trust their Internet bank

Friday 26 November 2004 00:31 CET | News

Internet banks are common in both Sweden and Great Britain. In Sweden the use of Internet banking is more widespread than in any other country in the world.

This positive trend may be hampered by security concerns. However, the risk of fraud, stolen identities and theft is real. A recent study conducted by the Swedish security company Todos shows that both Swedes and Brits do not fully trust the security of the Internet banks. The study also reveals interesting differences in how these nationalities view e-commerce, web transactions and security matters in a digital environment. The data was gathered using an e-mail questionnaire. 1 200 Internet users in Sweden and Great Britain responded. The UK Home Office estimates that identity theft is growing at 165% per year in the UK and is currently costing the country £1.3 billion annually. Identity theft is growing even faster in Eastern Europe and Southeast Asia. The rise in crime is largely attributable to the accessibility of personal information. Below is a summary of the results revealed in the Todos report. Internet banks are more common in Sweden than in Great Britain. 84 percent of the Swedish respondents state that they do most of their banking on the Internet. This differs from Great Britain, where only 55 percent use the Internet bank on a regular basis. 25 percent do not fully trust their Internet bank The study shows that Internet banks face security concerns among their customers. Both in Sweden and in Great Britain about 25 percent are of the opinion that the banks are not fully safe. 7 percent of the Swedes have large doubts about the banks security solutions. Among the British this number is 4 percent. The few Swedes that do not use an Internet bank state the security risk as the primary barrier (42 percent). For the Brits it is the lack of interest that is the main barrier, followed by security concern (26 percent). Internet fraud more common in Great Britain In Sweden, 10 percent of the respondents state that they have been the subject of fraud on the Internet. In Great Britain this number is an astounding 20 percent. - The study shows that despite the fact that many people use an Internet bank they are concerned about security issues. The trend in the US is worrying. Last year more than 2.4 billion dollars were stolen from personal Internet accounts. More than 81 percent of the Swedish respondents agreed that enhanced security features would influence their decision to purchase online. In Great Britain this number is even higher, 91 percent. Sensitive information In terms of providing information on the Internet there are distinct differences between the two countries. 40 percent of the Swedes would definitely not provide their debit or credit card number on the net. Swedes also think that pictures of themselves are more sensitive than their personal ID number. The Brits view their security number as the most sensitive information (63 %); followed by pictures of themselves and their mobile phone number. Only 21 percent perceive the bank or credit card number. Security crucial In both countries the respondents view the security as a crucial prerequisite. In Sweden 37 percent of the men would switch bank if it was revealed that their bank had security problems. The women would stay with the bank but stop using the Internet services. In Great Britain both female and male consumers would stick with the bank but stop making transactions on the Internet. - It is obvious that the level of security at the different banks varies. I think that a large part of the consumers in both Sweden and Great Britain are unaware of the security issues of their bank. More information would help preventing some of the crimes that we see today, says Anders Ahlqvist, computer crime and intelligence specialist at the Swedish National Police.

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Categories: Banking & Fintech | Online & Mobile Banking
Countries: World
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Banking & Fintech