This news does not surprise me. I have long lamented the weak security measures of banks and credit card companies. For one, I am astounded that banks require you to make weak passwords– 8 to 10 characters, all letters and/or numbers. That is SO easy to crack! My Photobucket account has a better password than my bank online account.

Banks have recently tried using “one-time” passwords for “added” security. But the news is that hackers find these a piece of cake:

Security measures such as one-time passwords and phone-based user authentication, considered among the most robust forms of security, are no longer enough to protect online banking transactions against fraud, a new report from research firm Gartner Inc. warns.

Increasingly, such measures are overwhelmed by online criminals looking to pillage bank accounts using valid login credentials stolen from customers, the report said.

Going forward, banks need to quickly implement additional layers of security to protect their customers from falling victim to online fraud, said Avivah Litan, Gartner analyst and the report’s author.

Gartner’s warning comes amid a sharp uptick in fraud involving the exploitation of valid online banking credentials. In August, NACHA- the Electronics Payments Association issued an alert, warning members about attacks involving the theft of online banking credentials, such as usernames and passwords mostly from small- and medium-size businesses. Cybercriminals used the stolen credentials to take over corporate accounts and initiate unauthorized transfers of funds via electronic payment networks, NACHA said in its warning. NACHA, with more than 11,000 financial institutions as members, oversees the Automated Clearing House (ACH) electronic payments network.

Just a few days earlier, a similar alert was sent to members of the Financial Services Information Sharing and Analysis Center. The alert identified organized cybercrime groups in Eastern Europe as predominantly responsible for illegally siphoning millions of dollars off corporate accounts and sending the money overseas via popular money and wire transfer services.

Last month, the FBI’s Internet Crime Complaint Center noted that as of October, cybercrooks had attempted to steal approximately $100 million from U.S. banks using stolen log-in credentials. On average, the FBI is seeing several new cases opened each week, the complaint center said. In most instances, the crooks used sophisticated keystroke logging Trojan horse programs to steal login credentials from company employees authorized to initiate funds transfers on behalf of the business, the FBI noted.

I am suspicious as to why banks and credit card companies are SO SLOW to adopt tighter security. With the technology and ability already out there, why are banks not taking advantage of it? Why are they so reticent to make our money and transactions more secure?

Tags: banks, hackers, passwords, security