Banks and credit unions targeted
INSECURITY COMPANY Cyveillance has reported a significant increase in phishing attacks over the past eight months.
According to the online panic merchants, 95 percent of the attacks were aimed at banks and credit unions. Indeed, fraud losses for online banking totaled a shocking $95 million in 2007.
Although the figure is significantly lower than the $2 billion lost to credit card fraud, US federal regulators have stepped up their efforts to combat phishing activity. By November, banks will be expected to train staff and formulate programs for the detection and prevention of identity theft.
Avivah Litan, a former World Bank senior manager, told the San Francisco Chronicle that current security measures employed by financial institutions “were not good enough”. Litan, who currently works at a technology research firm, also recommended that US banks secure their identity confirmation process on websites and at call centers.
Improved security procedures could help thwart attempts by hackers to extract sensitive information from unsuspecting surfers via a combination of spoofed e-mails and sophisticated malware.