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Cyber Risks · Krebs on Security

Regulators Revisit E-Banking Security Guidelines

Summary: Federal banking regulators are revisiting the 2005 FFIEC guidance that required multifactor authentication for online banking, after a working group convened service providers such as Jack Henry and Digital Insight and banks of all sizes in closed-door meetings that concluded a couple of weeks before this March 2010 report. FDIC senior technology specialist Robert C. Drozdowski said many banks adopted inexpensive challenge questions that criminals defeat with ease, and that few have deployed back-end transaction monitoring to flag anomalous activity.

What you should know: Drozdowski acknowledged that online banking fraud against small and mid-sized businesses draws regulatory attention mainly when banks themselves take losses, and that commercial real estate losses in the billions currently hold more of the regulators' focus than million-dollar fraud losses. The standard banks must meet, commercially reasonable security, remains, in his words, ambiguously defined and left to case law.

Read the original at Krebs on Security ↗

Topics
Data Breaches
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