Cyota Online Fraud Survey: 50% of Accountholders Have Received Phishing Emails

Tuesday 11 January 2005 06:10 CET | News

Cyota has reported some of the key findings from its second annual Financial Institution Online Fraud Survey, conducted in November 2004.

Cyota conducted a similar survey in April last year. The online survey, representative of the online U.S. adult population with a bank account, focused on online security, email fraud, AKA phishing, and consumers response to the growing trend. Key results found in the survey include: - 50% of accountholders have received at least one phishing email, compared to less than 25% back in April - representing 100% growth in just six months. - 44% of online bankers utilize the same password for multiple online banking services - a password obtained by the fraudsters can be used at a number of banks. - 37% of online bankers use their online banking password at other, less secure sites - these sites are typically less protected and this poses a security risk for banks. - 79% of accountholders check for the little lock on the bottom of a secure web page, however less than 40% actually click on the lock to view the security certificate. Cyotas Anti-Fraud Command Center (AFCC) confirms: lock image can be and is easily spoofed by fraudsters. - 70% of accountholders are less likely to respond to an email from their bank, and more than half are less likely to sign-up or continue to use their banks online services due to phishing. Twice as many accountholders received phishing emails in the last six months. Cyotas AFCC, which tracks phishing and online fraud, has recorded a constant growth of approximately 30% every month for the past six months. In accordance with what the AFCC has seen, Cyotas survey shows that the number of accountholders that have received phishing emails has multiplied from 25% to 50%, in just six months. Over 40% of accountholders have seen an increase in the amount of phishing emails they received in the past few months; and almost 5% admitted to responding and divulging information. Online banking passwords become less secure due to user behavior. According to Cyotas survey, 44% of online bankers utilize the same password for all of their online banking services - over 30% of online bankers use 3 or more online banking services. This allows the fraudster gangs to leverage information stolen from one banks accountholders for conducting fraud at additional banks as well, thus exploiting these shared online banking passwords. 11% of online bankers save their passwords in their computer, and many - 37% - share their secret password with other less protected services, such as online merchants and subscriptions, which weakens the passwords even further. Accountholders are concerned; phishing reduces their trust in the online channels. Cyotas survey indicates that accountholders concern may result in actions or non-actions that will affect the online environment as a viable channel all-together. Over 70% responded that they are less likely to respond to an email from their bank. Similar concern (75%) was expressed in Cyotas April survey. In addition, more than half stated that they were less likely to sign-up or continue to use their banks online services because of phishing. Cyotas survey, which was conducted with Infosurv, an online market research company, included 655 responses. The survey has a statistical accuracy of +/- 3.84% at the 95% confidence level.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce