Online banking too risky? Some say yes

Even as antifraud efforts increase, study finds that 18 percent of Americans are turning back to offline transactions.

The story "Online banking too risky? Some say yes" published November 9, 2005 at 5:16 AM is no longer available on CNET News.

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[Dead Soulman]

Forgot One Thing.

This article forgot to mention a previous study that proved that individuals who check their accounts online, are more likely to detect fraud or unauthorized transactions.

This article, however, did mention that individuals must make sure that their connection is secure.

Windows users need to start using their spyware removing programs and watch the places they frequent while online. Interesting how the internet is assimilating real life. Hang out in bad places, and you'll wind up with something bad.
Although the majority of the cases are innocent victims who didn't know any better and fell victims of this predators.

[ajbright]

Puzzled

It has always puzzled me as to what someone could really do with access to your online bank account - except maybe transfer money from one of your accounts to another of your accounts, check statements and monitor debit card activity there doesn't seem much anyone could do.

Even credit card accounts associated with your bank account (or credit union / building society) don't offer much beyond your current balance and recent billing activity.

If you had stolen someone's card and wanted to see how much was available and what the address for the card was, then maybe that could be useful. But the chances of being in possession of a credit card and online credit card account details seem somewhat remote.

As the other poster mentions, people can monitor their accounts and watch for unauthorised purchases - and when it comes to discovering fraudulent activity speed is the key, especially if someone has your debit card info.

If you don't realise you're being ripped off until your accounts have been emptied, your pretty much stuck - usually for between 3 days and a week, before the bank will refund your money.

With credit cards it can take a month before your fet your money back - so having online access is probably the best tool to defend yourself from theft.

ID theft is impossible with the miniscule amount of information you can get from online accounts.

No respectable bank would post details such as Social Security numbers, credit card numbers or verification information (mother's maiden name) online.

Offline accounts however are far more risky.

Your mailbox and trashcan could offer ID thieves everything they need to steal your identity or enable them to use your credit and debit cards.

Shredding your statements is all well and good, but as most ID theft occurs at the back of banks - because you're also relying on low paid bank employees to shred everything, or stealing from mailboxes (which is much easier, less messy and offers far more valuable information than garbage cans).

The reality is that people are actually putting themselves at risk by going offline - because although there might be information useful to a thief online (doubtful as that is), at least you'll be able to respond quickly to anything dodgy.

Offline account holders could wait up to a month before realising anything is wrong - and that's only if they immediately study their statements as they arrive.

[heystoopid]

got a lot worse thanks to sony bmg

got a lot more unsecure due to SONY's rootkit concealed files, with an undocumented phone home capability in the supplied media player. This excellent software brought to you by F4I, and supplied for the cost of your new copy protected SONY BMG Audio CD, is undetectable, just the sort of software that phishers, virii and trojan writers need to siphon all the information they need from any windows system !!!!! Oh well, when these new trojans flood the net we can thank SONY for the generous supply of these new tools!