HSBC readies online user authentication

Banking giant strengthens arsenal against online fraud

HSBC will issue keyring-sized authentication devices to UK internet banking customers if phishing emails and key-logging software continues to grow.

The bank, which has seen a 50 per cent increase in internet banking use in the last year, believes it has strong enough security measures in place to stem the rise in online identity theft, but is ready to issue personal security devices if needed.

HSBC has already piloted two-factor authentication devices in Hong Kong and Brazil, but wants to tackle internet crime through consumer education and anti-fraud detection technologies before deploying them in the UK.

‘There is a trade-off between security and convenience,’ Joe Garner, general manager of customer propositions and head of personal financial services at HSBC, told Computing.

‘We are confident that the security measures we have in place today give the highest levels of security. But if we do see an escalation of online crime then we have a tried and trusted solution that we can deploy.’

The bank has also given its support to Get Safe Online, a major government and industry initiative launched last week to educate the public and small companies about IT security and help restore trust in ecommerce (Computing, 27 October).

In a speech at the campaign launch, Prime Minister Tony Blair said people must take steps to use the internet safely.

‘The internet is transforming the way we live our lives at home and at work,’ he said. ‘Ecommerce is increasingly vital to the UK economy, with three-quarters of online users now doing transactions over the internet.

‘It is essential that people take the steps they need to ensure they can use this fantastic resource safely. Just as we take steps to protect ourselves and our families in other areas of life – by making our houses secure, by insuring our property, by making sure the people we do business with are trustworthy – so we need to understand and protect ourselves against the risks of internet fraud and other online risks.’

eBay believes that Get Safe Online will make internet users more aware of criminal scams.

‘When you walk down the street you know not to pay a stranger in a trench coat a thousand pounds upfront for a laptop he says he has stored around the corner, but people do this online,’ said Gareth Griffiths, head of trust and safety at eBay UK.