The positive trend of online-banking adoption glosses over clients’ underlying security concerns. More and more Europeans enjoy the convenience and autonomy of online banking. But those who abstain from it increasingly do so because they don’t think it’s safe. More than 30% of German internet users who don’t use online banking say the reason is security fears. chart 1
Online security is the watershed between online and offline bankers. While an above average share of online bankers is confident of online security, offline bankers are particularly unconvinced. It will take a mixture of positive experiences and improved internet literacy to convert the sceptics. chart 2
Sense of security rises with online experience. This is driven by two factors: Firstly, some of the security fears of beginners are overblown in the first place and dissolve over time. Secondly, users go through a learning curve. After a while, they know how to handle many of the typical internet risks and how to behave appropriately online. chart 3
Most users have faced some form of internet scam already. Attacks by spam, viruses or phishing are prevalent nuisances to internet users. For example: More than 60% have encountered threats of worms or viruses. The constant exposure may be scary but it also makes users more resilient because they get used to being vigilant and to applying reasonable safety measures. chart 4
More than 90% of all phishing mails pretend to come from banks. Phishing attacks use “spoofed“ e-mails and fraudulent websites. They are de-signed to fool recipients into revealing personal data, user names or passwords in order to steal money from their accounts or to commit other forms of fraud. chart 5
However, the great majority of users defy phishing attacks.While 9% of German internet users (around 2.3 m online bankers) reported phishing attacks, the police recorded only 3,500 phishing-related crimes. This suggests that only 1 or 2 per 1,000 users attacked by phishing actually fall for it. This shows that online bankers are – to a very large extent – capable to detect dubious solicitations. chart 6
Would-be online bankers would love banks to assume all the risks. Comprehensive security guarantees are the single most important measure to persuade more customers to use online banking. But such guarantees would invite careless and irresponsible behaviour and therefore make the internet a less safe place. chart 7
Online bankers need to take reasonable safety measures – and they do! Cross-country evidence from Europe shows a strong positive correlation between the share of online bankers in the population and the application of anti-virus software. Both variables are driven arguably by internet literacy. The use of basic safety measures massively reduces the risks of being cheated on the internet. The correlation confirms the notion that safe and therefore widespread online banking needs a little help from its users. chart 8
Online security is the watershed between online and offline bankers. While an above average share of online bankers is confident of online security, offline bankers are particularly unconvinced. It will take a mixture of positive experiences and improved internet literacy to convert the sceptics. chart 2
Sense of security rises with online experience. This is driven by two factors: Firstly, some of the security fears of beginners are overblown in the first place and dissolve over time. Secondly, users go through a learning curve. After a while, they know how to handle many of the typical internet risks and how to behave appropriately online. chart 3
Most users have faced some form of internet scam already. Attacks by spam, viruses or phishing are prevalent nuisances to internet users. For example: More than 60% have encountered threats of worms or viruses. The constant exposure may be scary but it also makes users more resilient because they get used to being vigilant and to applying reasonable safety measures. chart 4
More than 90% of all phishing mails pretend to come from banks. Phishing attacks use “spoofed“ e-mails and fraudulent websites. They are de-signed to fool recipients into revealing personal data, user names or passwords in order to steal money from their accounts or to commit other forms of fraud. chart 5
However, the great majority of users defy phishing attacks.While 9% of German internet users (around 2.3 m online bankers) reported phishing attacks, the police recorded only 3,500 phishing-related crimes. This suggests that only 1 or 2 per 1,000 users attacked by phishing actually fall for it. This shows that online bankers are – to a very large extent – capable to detect dubious solicitations. chart 6
Would-be online bankers would love banks to assume all the risks. Comprehensive security guarantees are the single most important measure to persuade more customers to use online banking. But such guarantees would invite careless and irresponsible behaviour and therefore make the internet a less safe place. chart 7
Online bankers need to take reasonable safety measures – and they do! Cross-country evidence from Europe shows a strong positive correlation between the share of online bankers in the population and the application of anti-virus software. Both variables are driven arguably by internet literacy. The use of basic safety measures massively reduces the risks of being cheated on the internet. The correlation confirms the notion that safe and therefore widespread online banking needs a little help from its users. chart 8
