Halifax offers online fraud and hacking reassurance

[InfoSec News <isn () C4I ORG>]

http://www.zdnet.co.uk/news/2000/34/ns-17551.html

Tue, 29 Aug 2000 14:49:57 GMT
By: Will Knight

Will the Halifax set a precedent in dealing with online fraud?

The Halifax bank has responded to growing concerns over online
security Monday by offering antifraud measures and antivirus services
to its customers.

> From the end of September the bank will offer guaranteed reimbursement
against Internet fraud as well as complimentary antivirus software.

According to the Halifax, the antivirus software will help protect
customers against Trojan horse programs that could be employed to gain
access to accounts or personal information. The antifraud guarantee is
designed to reassure them that even if they are targeted, they will
not be left out of pocket.

The new services follow a string of recent Internet security incidents
at major UK businesses including Powergen and Barclays.

UK banks were recently savaged in an independent report in July --
Electronic Commerce: Who Carries the Risk of Fraud? -- for leaving
customers responsible for reporting and proving online fraud.

The Halifax' revamped antifraud guarantee, which will be displayed on
all the bank's financial Web sites, states: "If an Online customer is
a victim of fraud the Halifax will guarantee that they won't lose any
money on their Halifax account and that they will always be reimbursed
in full."

Brain Gladman, computer security expert and co-author of the July
report, remains concerned that this does not clarify the extent to
which customers will be left to prove their innocence. "The issue is,
if a customer claims fraud, what do they have to do?" says Gladman.

A Halifax spokesman says that the bank will work with customers on a
case by case basis in order to determine whether they have been the
victim of fraud.

General manager of Halifax Online David Walkden believes the new
services will help rebuild consumer confidence. "These initiatives
mean that our customers will have the peace of mind of knowing that
their own PCs are protected against any computer viruses as well as
having the security of the Halifax Online Guarantee," he comments.

News of these new services comes shortly after the Halifax announced
its subsidiary online service, Intelligent Finance, has been delayed
to carry out further testing.

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