Banks play down risks of internet banking

Most Australian banks have rejected the use of so-called two-factor authentication, a technique in which bank customers use a second method, such as an electronic token, to provide greater security to internet banking. Forrester Research shows 14 percent of US-based consumers have lost confidence in conducting business transactions online due to security issues such as Trojans, worms, keyloggers and phishing attacks. But Australia banks do not believe local consumers share those fears. HSBC said customers have so far been unfazed by security issues created through online banking and that using tokens to confirm access to internet banking might create more problems. Bendigo Bank has offered security tokens to customers for $16.50 each since August last year.