ONLINE BANKING SECURITY RISKS

Online Banking Security Risks

Online Banking Security Risks

Introduction

Security of networks and systems operating in business organizations is of paramount importance to all business engaged in electronic commerce and online commerce (Lawrence et. al. 2000). In an increasingly connected world where most organizations have connection to the internet, security is most wanted and security management is needs to be done in a well-organized and systematic way as it will have a direct impact on the organization itself. The essay sets off with a critical review of the term security in the context of information systems, which illustrates the treats and risks arising from extensive use of information systems. Then, through a case study of banking giant Citibank, the essay addresses which security measures and how security managements are conducted to subdue threats and risks by Citibank in securing its information system and business. In the end of the essay, another great emphasis is laid on an outlook of banking industrial, which discuss the challenges as well as the development of the industrial.

Discussion

Security and control of information systems is very important, however, often overlooked by some companies. Companies have to depend on information system to manager their core business. Once the information system have a security problem, company's information assets like confidential staff information, business secrets, and commercial development plan will be lost. Many people, particularly in managers assume that information systems will operate as they are designed to work. They assume that the system will work reliably and the information generated will be correct. When these assumptions are proven wrong, the consequences can be disastrous. Alter (1992) argued that there are five types of risks of accidents in information systems (Steven Alter 1992).

Company Profile

Citibank is a major international bank, founded in 1812 as the City Bank of New York. Citibank is now the consumer and corporate banking arm of financial services giant Citigroup, the largest company in the world. Citibank offers a wide range of checking, savings, CD and retirement products — and all come with many free services including online banking, convenient account access, and 24/7 support.

Citibank Online lets its customer take care of business without visiting a branch — they can pay bills, view account activity, make transfers, send wires, and use a wide variety of self-service options(web.da-us.citibank.com). Citibank.com is the source of information about and access to domestic financial services provided by Citibank retail banking and the Citigroup family of companies (Official Website of Citibank.com 2007/2).

Citibank Security Threats and Risk

Security breaches of banking activities essentially fall into three categories: breaches with serious criminal intent (e.g. fraud, theft of commercially sensitive or financial information); breaches by 'casual hackers' (e.g. defacement of web sites or 'denial of service' - causing web sites to crash) and flaws in systems design and/or set up leading to security breaches.

Online Fraud

Spoof (a.k.a. phishing or hoax) e-mails that appear to be from Citibank can put its customer at huge risk. Although they can be hard to spot, they ...