Web banks not secure enough for customers

Mistrust of internet security is hampering the adoption of online banking.

A study conducted by MORI on behalf of RSA Security shows six million people in the UK are not banking online because they feel security measures such as username and password are insufficient.

Some 38 per cent of people who do not bank online said they would be encouraged to adopt internet banking if security measures were improved.

'People haven't been able to make that leap of faith to going online mainly because of a lack of trust of the internet and fear of opening their financial houses online,' said Tim Pickard, RSA's European strategic marketing director.

'This is not just about hearing stories about online banking, it's more about the relative trust around the internet as a whole,' he said.

Users are unlikely to change their views until new and more robust solutions to security are introduced.

Some 57 per cent of respondents said they would be reassured if their banks offered better security systems. RSA has developed software that sends users a four-digit PIN code by text message to their mobile phone during the login process. The number has to be entered to establish a connection.