Around 30% of banks carry high risks of online fraud and security threats, according to a study by the Bangladesh Institute of Bank Management (BIBM).
The study titled ‘Online Frauds and Security Issues in Banks’ was based on 50 fraud cases reported in the country recently, and included 14 banks that have been offering centralised online banking through data centre (DC) and disaster recovery site (DRS) in the last two years.
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It found that ATM and plastic card transactions have highest fraud rates with 43%, followed by mobile banking with 25%.
BIBM assistant professor and study co-author Md Mahbubur Rahman Alam was quoted by The Daily Star as saying that the banking sector now contains a significant threat of online frauds due to poor investment in IT professional development, with only 2% invested for security, training and audit in 2012.
"Ignorance of these banks may pose serious security threats for the entire sector," Alam added.
The study also found that around 60% of the IT budget in 2012 was used for hardware and 18% in networks.
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By GlobalDataBangladesh central bank former deputy governor Khondkar Ibrahim Khaled told the website that an increase in IT budget will ensure risk-free transaction.
"This study is an eye opener for the central bank, so it should create a separate wing or department to monitor the IT risk," Khaled added.
