Some 24 per cent of banks worldwide struggle with the identification of their customers when delivering digital and online banking services, according to a new survey from Kaspersky Lab.

The online security firm recommends that verifying a user’s identity should be taking centre stage in the cyber security strategies of financial institutions, as 59 per cent of banks anticipate growing financial losses due to fraud over the next three years.

According to the research, in 2016, three in 10 banks have had security incidents affecting banking services delivered via the Internet — with phishing against customers, and using customer credentials for fraudulent activities, as the top contributing factor leading to the attacks.

Furthemore, 38 per cent of the organisations surveyed confirm that balancing prevention techniques and customer convenience is one of their specific areas of concern.

Alexander Ermakovich, head of fraud prevention at Kaspersky Lab, said: “While thinking of different approaches to secure digital and mobile channels, banks naturally avoid putting too much pressure on customers.

“Online banking should preserve its main benefits: as a convenient way of making financial transactions in seconds. That is why we are working on technologies that help to protect both banks and their customers without adding an extra security routine to the user’s experience.”

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