Online banking: security & convenience

By Daniel Culpan

Extra security measures introduced by some major banks to help reduce the risk of fraud for online banking customers have divided opinion, the Daily Mail reports.

HSBC has recently started sending out devices called 'secure keys' to its four million customers who bank online, in an effort to 'add an extra layer of safety' to the process.

With many people now using the internet to transfer money between bank accounts and check their balance, HSBC aims to ensure all of its online customers have the handheld device - which generates a new code every time the customer wants to access their account - by the end of 2011.

However, some customers have expressed concerns about the secure key technology - claiming that it makes online banking more time-consuming and inconvenient.

A spokesman for HSBC commented: "The devices will mean all online customers will have static and changing security information. It makes banking online a lot more secure. As the security data generated by the device changes each time someone logs on, it makes it much more difficult for fraudsters to hack in or access an account."

Though total losses from online banking fraud fell by 22% in 2010, according to UK Payments, they still cost around £50 million annually.

Tags: bank, banking, bank account, online banking, secure banking, banking fraud, HSBC, UK Payments

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