Originally published January 19 2005
Customers looking for ways to avoid phishing attakcs when banks contact them
by Mike Adams, the Health Ranger, NaturalNews Editor
With phone and e-mail fraud apparently on the rise, consumer groups are now asking asking banks to find ways to prove their identity when contacting customers. The groups are encouraging their members to be very wary of giving out account information before being absolutely positive they are communicating with bank personnel.
A number of banking customers have become concerned about the apparently random methods used by some banks to contact them, with unsolicited calls singled out as a source of confusion in these days of phishing, where criminals, typically posing as banks attempt to trick users into divulging details such as passwords and log-ins.
Banks appear to be increasingly contacting customers by SMS or by automated phone call, often asking them to dial back on a given number where they are asked for varying levels of personal information.
Similarly, cold calls are made to customers where they are again asked to prove they are the name customer on the account - with no similar level of authentication coming the other way.
One silicon.com reader contacted us with the following example.
"Someone phoned me claiming to be from the Co-Op Bank and immediately asked for answers to security questions.
Richard Allan, Lib Dem MP for Sheffield Hallam and member of the All Party Internet Group, agrees that more needs to be done and supports silicon.com's calls for greater authentication.
"We need to keep ahead of the fraudsters and this issue of calls appearing requesting personal identification details is a potentially serious security hole the fraudsters are likely to exploit.
"The use of passwords would certainly provide an immediate improvement in the level of security," said Allan.
Independent computer crime expert Neil Barrett sympathises with the banks to an extent saying "their hands are tied by money-laundering laws" which mean they have to check all anomalous transactions with customers and this requires some element of cold calling.
However, Barrett agrees there needs to be more two-way dialogue in ensuring the authenticity of both parties taking part in such calls and believes a three-fold "password, counter-password, counter-counter-password" system would prove most effective.
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