Nearly a third of financial services organizations fail to offer customers a secure channel for all their online payments, despite the fact that 50% believe online financial fraud is rising, according to a new report by Kaspersky Lab and B2B International.
The report says that many banks and payment companies are struggling to fully protect themselves and their customers from financial fraud at a time when clients are using an ever-wider range of devices to conduct financial transactions online.
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Though 65% of the respondents said that customers are increasingly using different devices to make online payments, only 53% have implemented two-factor authentication and only 50% have introduced a specialised, real-time anti-fraud solution, according to the study.
Less than half (42%) financial institutions said they extend specialised, real-time anti-fraud solution to customer devices and only 67% said they implemented a secure connection for all online payments.
Nearly half (48%) of the respondents accepted that they are only mitigating risk rather than removing it altogether.
Ross Hogan, head of SafeMoney Business Development, Kaspersky Fraud Prevention, Kaspersky Lab, said: "The study shows that banks and payment organizations are finding it difficult to manage online financial fraud in today’s connected, omni-channel consumer landscape. 38% of the organizations we spoke to admit that it is increasingly difficult to tell whether a transaction is fraudulent or genuine, with a worrying one in three opting for a ‘we’ll deal with it as it happens’ approach to fraud protection.
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By GlobalData"If you consider that our own research uncovered 22.9 million financial malware attacks in 2014, targeting 2.7 million customers worldwide, it is clear that dealing with each incident individually is not a viable, long-term option. Customers deserve better and so does the financial services organization."
