Phishing causes banks significant distress, with 78% of those surveyed stating that they are concerned with phishing attacks.

Boston, MA, March 26, 2008 – A new report from Aite Group, LLC identifies strategies banks could employ to safeguard against phishing attacks and maintain the credibility of bank-issued e-mail.

While 78% of banks surveyed state that they are concerned or very concerned with phishing attacks, the financial services industry is lagging in the application of even the most rudimentary forms of e-mail authentication. Fraudsters have grown increasingly precise, moving down the chain to target customers of smaller institutions, such as credit unions. Given the volume of attacks specifically impacting both customers and brands, financial institutions of all sizes must be more proactive in developing initiatives designed to mitigate the problem.

"Banks are not neglecting the e-mail channel, and expect customers to use it increasingly over the next few years," says Nick Holland, senior analyst with Aite Group and author of this report. "However, the fly in the ointment remains phishing as a means of undermining both e-mail and Web channels. Even for institutions that feel comfortable regarding their control of the e-mail channel, the uncontrollable nature of phishing looms over all such initiatives."

This 17-page Impact Note contains 11 Figures. Clients of Aite Group's Retail Banking service can download the report by clicking on the icon to the right.

Related Aite Group Research:

• Mobile Banking Security: The Black Cloud Attached to the Silver Lining
• Online Banking and Brokerage Security: 12/31 and Beyond
• Online Banking Authentication and Fraud Detection: A Vendor Comparison
• Online Banking Authentication: A Survey of Banks

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Aite Group Sales
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