Online banks may have major security flaws

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July 25th, 2008 - Posted by Joe

A new report published by University of Michigan researchers found that 75% of online banking sites reviewed included serious security flaws that could put users at risk. Researchers found that of the 214 banking websites evaluated:

47% placed secure login boxes on insecure pages.

55% put contact information and security advice on insecure pages.

Some banks use social security numbers or e-mail addresses as user IDs.

28% don't state a policy on passwords, or allow weak passwords.

31% e-mail passwords or statements to customers.

30% redirect customers to a site outside of the bank's domain for certain
transactions without warning.

Some experts in the information security field are challenging the findings of the report as the research was conducted in 2006 and not published until 2008. The nearly two year gap means that many of these issues have likely been addressed in the meantime. There is also some debate about the quality of the research methodology used.

That being said, it is always a good idea to be aware of exactly how the sensitive data that you share over the Internet is being protected. Its a good idea to review the privacy policy and terms and conditions of any website where you are submitting sensitive personal information so that you understand how that information will be used and protected.

Internet security software can help web surfers identify and block suspicious websites. Additionally, these software programs can prevent spam, virus and phishing attacks. Read our guide to Internet security software providers to learn more.