Absa tightens online security

Johannesburg, 13 Jul 2006

Absa has expanded its security measures so online purchases of airtime also require a one-time password, the bank says.

Absa`s statement follows a recent wave of press reports on accounts that have been illegitimately entered through key-logging, with stolen cash being used to purchase airtime.

The South African Banking Risk Information Centre (Sabric), however, says the big four did not have their Internet banking systems "hacked" or compromised.

"Information at our disposal about the recent Internet banking scams show no evidence that the banks` computer systems have been hacked," says CEO Gilbert Swats.

Security measures

Despite these incidents arising as a result of identity theft, Absa, which has more than 653 000 customers, has put further security measures in place to protect customers from Internet fraud, the bank says.

From this evening, customers buying prepaid cellphone or Telkom airtime on its Web site will require an automatically generated one-time password, or random verification number (RVN) service. The unique password will be sent by e-mail or SMS to the customer and can be used to enable the particular prepaid purchase while the customer is online, the statement says.

GM of the bank`s digital channels Christo Vrey says its aim is, over the next three to four months, to get all its online customers to use this feature, which will protect critical functions. Aspects the bank has identified as critical include the addition of new beneficiaries and changing of personal details.

Nedbank already has a similar system in place. The bank`s head of virtual channels Maire Eltringham has previously said payments to third-party accounts that are not pre-registered on a customer`s profile require additional security by means of a unique number sent by SMS.

Eltringham explains: "Because the SMS feature operates independently of the client`s computer, it is unlikely the once-off unique reference number can be compromised by fraudsters using key-logging software."

First National Bank (FNB) Online CEO Chris Kotze has said FNB is investigating a compulsory one-time PIN number facility that could reduce the amount of fraud by up to 80%.

Proven safe

Sabric says globally and locally, Internet banking has proven to be a safe form of transacting.

"The incidents over the past few days have resulted from identity theft. Criminals obtain customer`s personal information at vulnerable points such as Internet caf'es and use the information to siphon off funds from the customer`s bank account. The criminals have focused on these vulnerable points," adds Swats.

Under the Sabric umbrella, the banks are cooperating to address identity theft. "Fraud of any kind is a worldwide challenge. The South African banking industry will continue to take steps to address this crime threat and to ensure that South Africans remained banked - safely and securely," concludes Swats.