Is Internet Banking Safe?
Updated 29 August.
Internet banking is used by many New Zealanders every day. People like it because it’s quick and convenient and banks like it because it’s cheap to run. And on the rare occasions when it has gone wrong and people have had money stolen, the banks have always covered. That’s changing: a few weeks ago the New Zealand Bankers’ Association released a new code of practice which makes the banking customer – that’s you and me – at least partly responsible for the security of Internet banking. If you report a fraud, the banks are demanding the right to inspect your computer to see if you have secured it, and “may decline your claim if you refuse”. Hmm.
I talk here about whether we should trust Internet banking if the banks are no longer prepared to pick up the tab when people get their accounts drained by thieves. Links at the end. (more…)