Data security headache

[img_assist|nid=7624|title=|desc=|link=none|align=left|width=100|height=75]A new survey conducted on financial information security reveals that in spite of the customers' recognition of their role in protecting their information vulnerable to theft most of them go on neglecting the necessary safety measures, and what's more, they still keep on blaming their banks for financial data breaches.

Consumers of the US and UK banks are full of contradictions. On one hand, they agree that personal carelessness may result in identity theft, and on the other hand, half of the survey respondents admitted that they are not very cautious when using their passwords. For example, some customers use the same password on multiple accounts. Yet, in case of a security breach ¼ of respondents are determined to close their accounts in the respective bank at once.

Out of all the users inclined to close bank accounts under the breach circumstances, the most eminent group is represented by young customers aged 18 to 34. Such an attitude of a young contingent toward online banking services imposes a significant problem on the financial institutions.

Considering banks to be responsible for information security, young auditorium feels comfortable and carefree to disclose all the financial data on social networking sites. "They feel they should be able to use technology to extend themselves freely," notes Rob Dyson, an Irving, Texas-based senior executive with Accenture Technology Consulting's global security practice. Furthermore they have "high expectations that those servers are secure," and won't hesitate to change banking relationships if those expectations aren't met. Consumers expect that "banks are putting appropriate security and controls in place," he adds - even if users don't do their parts. "That's the challenge banks have."

One of the solutions banks are resorting to is biometrics. A fingerprint reader is supposed to improve security of online operations and to be very popular with the customers who transport their laptops outside of work or home if their financial institutions provided the device.

"The big push for banks right now is a biometric card - like a universal ID card," says Dyson, who believes the answer lies in a combination of identity management tools. "The offspring is the whole area of soft token technology and biometrics," he explains. A soft token is a software security device - a virtual version of hardware keys or hard tokens.