Nearly a third of financial services organizations fail to offer customers a secure channel for all their online payments, despite the fact that 50% believe online financial fraud is rising, according to a new report by Kaspersky Lab and B2B International.
The report says that many banks and payment companies are struggling to fully protect themselves and their customers from financial fraud at a time when clients are using an ever-wider range of devices to conduct financial transactions online.
Though 65% of the respondents said that customers are increasingly using different devices to make online payments, only 53% have implemented two-factor authentication and only 50% have introduced a specialised, real-time anti-fraud solution, according to the study.
Less than half (42%) financial institutions said they extend specialised, real-time anti-fraud solution to customer devices and only 67% said they implemented a secure connection for all online payments.
Nearly half (48%) of the respondents accepted that they are only mitigating risk rather than removing it altogether.
Ross Hogan, head of SafeMoney Business Development, Kaspersky Fraud Prevention, Kaspersky Lab, said: "The study shows that banks and payment organizations are finding it difficult to manage online financial fraud in today’s connected, omni-channel consumer landscape. 38% of the organizations we spoke to admit that it is increasingly difficult to tell whether a transaction is fraudulent or genuine, with a worrying one in three opting for a ‘we’ll deal with it as it happens’ approach to fraud protection.
"If you consider that our own research uncovered 22.9 million financial malware attacks in 2014, targeting 2.7 million customers worldwide, it is clear that dealing with each incident individually is not a viable, long-term option. Customers deserve better and so does the financial services organization."