Bank Customers Face Online Risks

Newcastle Herald

Monday February 21, 2005

By BRIDIE SMITH The Age

THE nation's banks are not doing enough to protect Australians from online scams and fraud, according to research from a leading consumer group.

The Australian Consumers' Association, which released its survey on online fraud yesterday, said about 4.7 million consumers who used the internet for banking and shopping remained vulnerable to scams, mistaken transactions and fraud.

Finance policy officer Catherine Wolthuizen said some of the tactics employed by banks to protect their customers were basically ineffective. She said attempts by banks to shift the onus onto consumers did not result in adequate protection.

"Requiring consumers to constantly update virus protection software, to continually change passwords and PINs and never write those security codes down is simply asking too much of consumers," she said.

"Consumers say they struggle to keep up with such expectations and are uncertain of their rights."

Ms Wolthuizen said that of those surveyed, 57 per cent had received "phishing" emails that directed them to fraudulent websites.

"As fraudsters become more sophisticated, it is becoming harder for consumers to protect themselves against scams and it's increasingly requiring more complicated software and security processes," she said.

Some results of the survey, which interviewed 753 people online late last year, were positive. About 85 per cent of respondents said they felt very or fairly safe when banking online, while 95 per cent used virus protection software.

Ms Wolthuizen said while most Australians could identify scam emails, they were not so knowledgeable about email viruses and switch links, which access fraudulent websites regardless of whether they are activated.

She said it was the bank's responsibility to check names against account numbers before processing online transactions, so customers could be alerted to errors.

"Banks need to be a bit more reasonable," she said.

The Australian Bankers' Association dismissed the survey as inaccurate and biased, saying bank customers were well protected by industry standards.

"If a fraudulent transaction does occur, consumers have important protections through the Electronic Funds Transfer Code, with which ABA member banks comply," chief executive David Bell said.

The Age

© 2005 Newcastle Herald

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