Security in Online Banking (Strategic Focus)

Security in Online Banking (Strategic Focus) published by Datamonitor in July, 2009. This report consists of 39 pages and the price starts from US $ 3395.

Introduction

Abstract

Introduction

Online banking continues to evolve, both in terms of customer uptake and the sophistication of the offerings. Datamonitor looks atthe security issues at the current state of play with regard to the technology to address them.

Scope of this research

• Online banking
• Authentication, b ehavioral analysis and other security technologies

Research and analysis highlights

Internet banking is on the increase, in terms of both the number of people using it and the variety of transactions being carried out. This is leading to a requirement for greater security in the authorization of online customers and greater integrity in their banking sessions.

Key reasons to purchase this research

• Gain an insight into the evolution of online security
• See how banks are seeking to complement authentication technology with things like behavioral analysis

Table of Contents

OVERVIEW

• Catalyst
• Summary

KEY MESSAGES

• Online banking has grown, as has the range of things that customers are doing online
• Banks are increasing IT spend on online services and online security this year
• There are opportunities in client-side and back-end authentication technologies
• The US has a broader definition of 2FA/MFA than Europe
• Mobile phones are gaining traction as a channel for delivering a second factor
• A tiered approach to online security is advisable
• As phishing increases banks will need to do more on reverse authentication
• User education will be required for some types of technology

MARKET OPPORTUNITY

• Online banking has grown, as has the range of things customers are doing online
  • More account holders are banking online
  • More account holders are transferring funds online
  • The increasing popularity of online banking raises its profile for fraudsters

• Banks are increasing IT spend on online services and online security this year
• There are opportunities in client-side and back-end authentication technologies

TECHNOLOGY EVOLUTION

• Adoption of 2FA/MFA has varied markedly by region
  • Europe was first to adopt 2FA
  • Initiatives in Asia Pacific got underway mid-decade
  • In the US, the FFIEC called for the implementation of 2FA, but was not prescriptive about the type of technology

• The US has a broader definition of 2FA/MFA than Europe
• The FFIEC' s non-prescriptive approach has spawned alternative technologies in the US
• Mobile phones are gaining traction as a channel for delivering a second factor

CUSTOMER IMPACT

• Online security must be integral to banks' business
• A tiered approach to online security is advisable
• As phishing increases banks will need to do more on reverse authentication
• User education will be required for some types of technology

COMPETITIVE LANDSCAPE

• Client-side technologies
  • ActivIdentity
  • Authentify
  • Commerce Media
  • CRYPTOCard
  • Fronde Anywhere
  • Gemalto
  • GrIDsure
  • IBM
  • PassFaces
  • SafeNet
  • SecurEnvoy
  • Thales
  • Vasco
  • VeriSign
  • Vett

• Back-end technologies
  • ACI
  • Entrust
  • Ericsson
  • Guardian Analytics
  • Iovation
  • Quova
  • RSA
  • Tier-3

GO TO MARKET

• Recommend a mixture of technologies
• Disruption to existing infrastructure is to be discouraged
• Banks will need help with user education
• Delivering technology as a service will appeal to smaller US and German institutions
• Channel partners will be key in such accounts
• Countries with greater banking concentration prefer to buy products
• The fight against fraudsters will go on, so a long game may be in order

APPENDIX

• Definitions
  • CAPTCHA
  • IP geolocation
  • Man-in-the-middle (MITM) attacks
  • Man-in the-browser (MITB) attacks
  • One-time password (OTP)
  • Out-of-band authentication (OOBA)
  • Transaction Authentication Number (TAN) lists
  • Two-factor authentication/Multi-factor authentication (2FA/MFA)

• Methodology
• Further reading
• Ask the analyst
• Datamonitor consulting
• Disclaimer

FIGURES

• Figure: Percentage of US adults who “do some internet banking” (i.e. not necessarily daily)
• Figure: European banks' investment priorities for payments in 2009
• Figure: North American banks' investment priorities for payments in 2009
• Figure: European banks' channel investment priorities for 2009
• Figure: North American bank' s channel investment priorities in 2009

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