Bank Customers Voting With Their Feet Against Privacy And Security Responsibilities

A report claiming to show that one in ten bank customers have moved banks owing to privacy and security concerns is a clear example of how banks need to start taking responsibility for their online practices. And the study also shows that consumers are far from the naive consumers that some marketing experts often think they are.

The bi-annual index from Unisys shows that 85 percent of the population are worried about bank card fraud and identity theft. In addition, 75 per cent said that won’t bank or shop with people they cannot trust to safeguard their personal data.

What some banks don’t seem to realise is that, despite the security barriers being raised in recent times, the criminal hacking industry is not going to close down. On the contrary, it is on the rise and as long as the banks and retailers do not strengthen the technology available to their customers, we are bound to see more security incidents.

The results of the survey show that customers now understand that it is high time that these organisations safeguard the information they have been entrusted with.

And now it is up to the banks to take the necessary steps to stop the outflow of customers, especially now there are a number of new players entering the retail banking market. Banks need to wake up and smell the security coffee. They need to listen to their customers and this survey, and ensure they place the correct controls to keep the customer data as secure as possible.

Amichai Shulman is Co-Founder and CTO of Imperva, where he heads Imperva's internationally recognised research organisation focused on security and compliance. Prior to Imperva, Amichai was founder and CTO of Edvice Security Services, a consulting group that provided application and database security services to major financial institutions, including Web and database penetration testing and security strategy, design and implementation. Amichai served in the Israel Defense Forces, where he led a team that identified new computer attack and defense techniques. He has B.Sc and Masters Degrees in Computer Science from the Technion, Israel Institute of Technology.