Confidence in Online Banking 'Fragile', Says FSA
Half of active internet users are concerned over risk of fraud
27th January 2006
A report by the Financial Services Authority (FSA) has found that the average internet user's confidence in online banking is 'fragile', with 50% of people 'very' or 'extremely' concerned about the potential risks of online banking and other online financial transactions.
Although many people are installing security software onto their computers to help reduce this risk, around a quarter failed to keep their software up to date and offering adequate protection.
The research also shows that the vast majority of people believe banks must take at least some of the responsibility for any online fraud, while fully 45% believe banks must take sole responsibility.
If banks were to shift the liability for any fraud losses to the customer, 77% would abandon online banking.
The FSA says that this lack of confidence is holding the industry back, and banks should be looking at ways to better educate their customers on how to prevent fraud, as well as clarifying their positions on who is liable for losses incurred.
Read More: FSA : Banks encouraged to engage customers in tackling online fraud
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