Banking customers won't stand for subpar security, study finds

The majority of online banking customers are driven away by the knowledge of security incidents, according to a recent survey by Kaspersky Lab.

The survey, which questioned 11,000 consumers, found that 58% of respondents would avoid using a banking provider that had recently experienced a data security incident.

Despite consumers seemingly being cautious about the safety of their information and money when making online transactions, many put the onus on the provider to step up their own defences through more robust and reliable measures, the survey found.

In fact, 59% of consumers admitted that they would select a financial services provider or transact with an online store solely on the basis of the additional security measures it offered, to protect their hard earned cash and confidential data.

The research also found that nearly two thirds (65%) of consumers worry about the data security practices of companies they give their personal and financial information to – a rise of 9% on the previous year.

According to Kaspersky, this makes it all the more important for banks and retailers to demonstrate that they are doing all they can to allay these fears and make the safety of online transactions and data their top priority.

Ross Hogan, Kaspersky Lab global head of fraud prevention, says, "With more and more consumers not only using but relying on mobile banking and online payments to interact with companies and carry out transactions, there is an expectation that providers are taking adequate measures to safeguard their customers against fraud and breaches.

"Our research also found that 47% of consumers would use online payments more often if they had reliable protection for financial transactions, making it clear that providers need to do more to safeguard transactional data for the long-term profitability and reputation of their business."