Download this free paper about read about identity protection services and how it can help fortify the trust that customers place on their Financial Institutions.
Identity Protection Services
Perimeter offers an industry leading suite of identity protection services that include anti Phishing and Pharming services to protect the most valuable asset to any financial institution - its customers.
Since a Financial Institution's business success is reliant on their customer's confidence, providing safe and secure transactions is critical. Traditionally, customer trust has been relatively high in their Financial Institution (FI) as indicated by the data below:
Figure 1. Customer Confidence in their Bank's Security Posture
Unfortunately, client confidence in their FI is eroding due to the nature of attacks in today's hacker environment and the creation of the underground Internet economy. The trust that customers place on their Financial Institutions is being hit hard by several concerns including risk of security breach, risk of intrusion of privacy and risk of misuse of personal information.
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Figure 2. Issues Creating Trust Concerns Among Banking Customers
What is the real issue if an FI has a security breach? Would customers really leave and find a new place to hold their money? According to an EDS/Ipsos-Reid Online Banking Privacy Survey (see figure 3), the majority of banking clients would terminate their relationship with immediately upon learning of a security breach.
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Figure 3. What Customers Would Do If Their Financial Institution Had a Security Breach
This tells us that 40% of a Financial Institution's customers will likely take some or all of their business to a competitor. Added to this pain would be the fact that 32% would cease doing business on-line and start using the branch method thus significantly increasing the costs of doing business for the FI.
Just how valid is this threat of a security breach to FIs? We hear all the time about the breaches in large organizations but what about the smaller ones? Let us first take a look at a sampling of breaches that have occurred. See Figure 4 which highlights some of the well publicized breaches, indicating that breaches are not just geared toward the largest institutions.
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Figure 4. Summary of Security Breaches
Page 5 of 10 "They Don't Call'em 'Bank and Trust' for no reason:"
The Importance of Maximizing Depositor Trust When Transacting Online
Whether it's "Trust your car to the man who wears the star" or "In God we Trust" on U.S. currency, trust is the watchword of good relationships between providers and consumers. In addition to causing billions in actual damages and billions more in reputational damage, the world's computer hackers are eroding consumer trust in online enterprises. While half of America's consumers trust their online bankers, nearly half say they'll move offline upon experiencing a security breach. The loss of that consumer trust, and the cost of acquiring or reacquiring depositors, can be measured in the millions of dollars, even to a small Financial Institution.
As hard as client trust is to earn for FIs, (being a fragile, fickle, yet vital commodity), it can be eroded or eradicated in a few minutes with help from one creative hacker. These are among the many elements that can impact depositor-banker trust:
A Security Breach: The Financial Institution has been compromised and sacred, confidential customer data has been, or has the appearance of, being mishandled. In the majority of cases, an attack like this is typically a result of a Pharming attack.
Loss of data: The Financial Institution has misplaced data or had its customers' data stolen in transit, either in stored media or files sent over the Internet. This type of loss can be handled through secured data handling and the protection provided by secure socket layer (SSL) technology encryption.
Client Fraud: This type of loss occurs when an institution's customer is tricked into supplying their user name and password to a false site that they think is the real thing. Attacks like this are typically what we refer to as Phishing or Pharming attacks... [download for more]
