Banks Test ID Device for Online Security

Good overview of the next generation of online banking safeguards. Something mentioned in the article that I hadn't thought of before is what if they become so commonplace that every FI uses one; you're going to end up with a key chain that looks like Schneider's.

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Debit Cards Give Plastic Edge Over Paper

The tide is turning. Though the dollar amount of checks is still higher than electronic payments, there are now more electronic transactions than paper ones. Good news? Yeah, if you believe that the electronic movement of money leads to efficiencies that are in the end going to save our economy millions of dollars and consumers lots of headaches. In my humble opinion, it does.

Stolen computers have Wells Fargo customer data

Wells Fargo has had computers containing customer data stolen 3 different times in the last year? Amazing.

Online Resources To Buy N.J. Firm

Online Resources buys company that will help them expand their offerings to include credit card transactions.

Open Source Currency

Not sure I understand everything mentioned in this article but I get the gist: using your cell phone to move money is going to be a big, big thing.

De-Hyping WiMAX

It turns out WiMAX, at least in its current state, is a little too good to be true.

AOL Moves Beyond Passwords for Log-Ons

Though AOL no longer has the cache it once did this development is likely a sign of where authentication is going.

My sister-in-law uses one of these devices that displays the system's current password and it is pretty slick. My worry would be losing it and how long it may take to get a new one.

New Wireless Check Verifying Service

New product from a company called Ju$tchex that can verify a check, using the routing and account numbers, through a secure website or text messaging.

This type of technology takes away another reason why people use checks: the ability to pay for something without the money, or at least money at this exact second.

Thanks to Engadget.

Trade Your Wallet for Wireless

Wired article which mentions another technology and company to look out for: Near Field Communications.

Here's a related Engadget post.

Is Cash Becoming Extinct?

Nobody creates small, nutrient rich bites of information like the Motley Fool.

Card purchases outnumbered cash or check for the first time in 2003. Though Selena Maranjian rightly points out that this isn't all good news, I don't think this necessarily means we are headed down a path of profligate spending and credit problems. I think the use of cards also means we can more easily track our purchases and possibly hold to budgets better. I foresee credit cards that let you set up a budget and alerts you, on your receipt or in an email, that you've reached your monthly coffee allotment or ease back on the dinners out. More information is going to be created and should keep getting easier to track.

Sending Money Through Cell Phone Numbers

It's not clear from article how this works. Does the recipient have to be using the same cell phone company that you are? Does the recipient have to set up an account, like PayPal, to receive the money? Another good idea and one that gets better as more and more people get a cell phone.

"Ubiquitous Banking Interface (UBI)" is the system that this works on. I'm going to file away that name and variations ("Everywhere Banking") for possible future use.

Cyber Fears On Fed's Web Plan

I understand the concern about the Fed moving to the web but either the web is a [relatively] secure medium or it isn't. If it's good enough to move consumer or business funds, which if lost could be catastrophic for those involved, it should be good enough for the fed and banks.

Phoning home pesos from across the ocean

Sending money internationally via text message. Still sounds complicated, time consuming, and costly for the sender but it's a start.

The Money Machines

Fortune Magazine article about the history of ATMs. Need to read (or at least you did until I posted this) all the way to the end to get to the most interesting point:

"The ATM clearly fell short of expectations in one area, though. It never reduced the number of tellers or filled the demand for bank branches—something the machine's pioneers had promised. According to the FDIC's count, there are close to 75,000 branches today, up from under 58,000 in 1985. Tellers number 539,000, vs. the 484,000 in 1985—though many of them now also function as retailers, cross-selling IRAs and mortgages to customers who come in with a big deposit. And that is something human beings still do better than any machine. For now."

ATMs, like phone tellers and online banking and bill pay, don't eliminate jobs or save money, they just give customers a little more of what they want: freedom.

Checking Account Fraud Is Increasing - Automated Payments Give Rise to Scams

Surprisingly candid opinion from FTC's Director of Consumer Protection:

The FTC's Beales does not believe that tougher rules would deter checking account fraud. "I don't disagree that this is a threat the financial system needs to respond to. But whatever you do, thieves are going to look for ways around it," he said. "The people we're talking about don't pay a whole lot of attention to the rules."

Corillian Fishes for Phishers

Motley Fool showing some interest in Corillian and their new fraud detection system. They're impressed with the software but not with the investment opportunity. Details on the system are in short supply in the article and in the company's press release. Sounds like with their system you will be able to scan the Internet for suspicious behavior related to your brand.

Banks Start To Realize Identity Theft Is Expensive

Great post from one of my favorite blogs, techdirt.

Mozilla moves to fix security vulnerability

Mozilla has been touted as a safe alternative to Internet Explorer. This article shows that no browser is infallible.

First Santa Claus, now the secure browser.

Net Attack Aimed at Banking Data

Keylogging spyware seems to be a growing threat. Since it can sit unnoticed on a PC, users are unaware they are providing their login and passwords until it is too late.

Internet Explorer is the weak link in this case and making sure it is patched and/or a pop-up blocker is in place should protect most users. In the long term, we may need to encourage users to switch off IE, though that could be a long, tough slog. There are great alternative browsers but they would need to be installed (and, in some cases, purchased) so it is pretty tough to get people to switch from their free, pre-installed IE.

Here are the specifics that are only hinted at in the article: http://isc.sans.org/presentations/banking_malware.pdf

Online Banking Surges, Still Room to Grow

Nothing really new here but it's always good to see coverage in a national newspaper, in this case the Washington Post.

Gartner: Phishing on the rise in U.S.

ZDNet article based on same study in previous blog. This one better lays out the problem and, as I suggested, lays most of the responsibility on the user. It does, however, inspire me to consider some incremental changes. Even small changes can have a big impact.

Survey: 2 million bank accounts robbed

Survey that shows online banking is being targeted more for fraud. Scary stuff. It seems, though, that most of the safeguards fall again outside the realm of the financial institution. We can do a better job of locking down online accounts but there is resistance from consumers who don't want to remember another password (or even a longer one). We can do a better job of educating users about the dangers but people are still being taken in by Nigerian emailers even with the almost steady stream of newspaper stories and consumer warnings. There are some great ideas for securing accounts (many of them detailed in earlier blogs) but nothing yet that is easy to implement and/or easy for users to adopt. Will we find a middle ground? Someday. Will we ever eliminate fraud? No. We just need to keep plugging away.

Fame vs Fortune: Micropayments and Free Content

Strong argument against micropayments. A part of me is pulling for micropayments, though, because I think some of the proposed systems are elegant, PepperCoin for example.

Firms Flirt with Out-of-Band Authentication

BTN article with more password ideas and more new terminology, "Out-of-Band". Out-of-Band is basically authenticating one channel using another. Example: Person surfs to Online Banking login page, types in their account number, and they then get a system generated phone call that authenticates them. Crazy idea? Probably, but it's another option.

Website Analysis Isn't a Game

Wired article about website analytics package that represents web traffic as a city. Great idea.

Updated: I've downloaded and installed the software but need to get with our web design firm to place the tags on all of our pages. Anxious to start using it.

Recognition Keys Access

Another interesting solution to the password problem. This one seems a bit pie in the sky but it could be used as a starting point.

Picture Passwords

Picture passwords are an option that I've never considered. This BBC article talks about Microsoft's work on it.

Ran across related article on Brighthand for a product from Softava called PicturePassword that can secure a PDA. To unlock the PDA you have to click on a secret spot on a picture. This is neat because you can use your own pictures.

Prime Time Wireless - It's sexy, but is it safe?

Dopey article on CUES site regarding wireless networking. No explanation of why a credit union would create a wireless network besides the "sexiness" of it. If there is no reason to create one, there is no reason to be concerned about the safety of it.

Most of the problems of wireless security are out of the financial institution's control. We can't secure the networks, at home, at Borders, at Starbucks, that our members are using to access their accounts.

Simple Passwords No Longer Suffice

Even though most online banking users don't want to hear it, we may be coming to the point where an account number and the last 4 digits of your SSN is not enough. This AP article offers a couple alternatives.

Mission Statement

This is my attempt at creating a place where online banking professionals can come together to discuss online banking and the trends contributing to its future.