Fergie's Tech Blog

Shifting Liability: Consumers Fail to Meet Banks' Online Security Demands

Via CBC News.

Many consumers who manage their money through online banking services may be unaware of their financial institution's strict security requirements, thereby jeopardizing their eligibility for fraud reimbursement, according to a study out of Ottawa's Carleton University.

"All the time [the banks] say it's safe, and secure and simple, but consumers should be a little bit cautious about those marketing messages," lead researcher Mohammad Mannan, a computer sciences graduate student, told CBCNews.ca.

"They should check whatever is recommended and required by their bank, and then decide whether they can follow all the advice and recommendations."

Mannan will present the study at the New Security Paradigms workshop in New Hampshire on Tuesday.

More here.

Note: Interestingly enough, I am seeing exactly what I predicted would eventually (albeit slowly) begin happening several months ago -- a shift to place more online banking and financial fraud liability to the consumer. This study in Canada underscores the same issues that surfaced earlier this year in New Zealand. - ferg

posted by Fergie @ 9/17/2007 02:14:00 PM