The Financial Services Authority has urged all banks to improve on security for their online banking operations, in view of widespread worries over the threat of online fraud. A study conducted as part of the FSA’s Financial Risk 2006 report has found that 50% of Internet users are very concerned about the risk of fraud especially in doing financial transactions online.

The FSA’s call for banks’ being more responsive stems from the finding that most Internet users are still quite clueless about protecting themselves from malicious software and social engineering attacks. The group is concerned that users of online banking portals and e-commerce sites in general may not be educated enough to detect and counter possible social engineering scams that can defraud them of their identities and/or funds. Banks were hence asked to likewise exert more effort to educate clients on sound online security practices.

Company formation and business solutions experts agree that a good business environment entails trust in the financial sector’s enforcing adequate security measures that safeguard against possible fraud.

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