Online Fraud Worries Lead To More Bank Security Measures

In an effort to reduce the chance of online banking fraud – and the worries associated with it – a growing number of financial institutions have been introducing new features that are boosting security but also may be a pain to the users they are protecting. The banks are taking those worries seriously, as the percentage of customers shunning use of the Internet for their account needs has climbed from 1% to 5%, even as banks have been pushing for greater online banking use. The Wall Street Journal reports that a number of banks have, for example, tacked on additional questions to log in, the answers to which only the user would know. The trouble is, sometimes the users don’t remember the answers and they find themselves unable to access their accounts. The push by banks is coming in the face of a Dec. 31 deadline set by the Federal Financial Institutions Examination Council, which ordered financial institutions to create a more secure online environment by requiring identification beyond user name and password.