German watchdog to probe online bank security

[InfoSec News <isn () C4I ORG>]

http://www.timesofindia.com/today/19info31.htm

19 January 2001

FRANKFURT: Germany's banking watchdogs on Thursday said they have
launched a security check at some of Europe's largest Internet banks
and brokers as the threat from hackers or electronic theft increases.

The check of banks' electronic defenses will be run by a three-part
team including the German central bank the Bundesbank, the Federal
Banking Regulatory Agency BAKred, and the Interior Ministry's special
unit for computer security BSI.

``The reason for this is the huge advances in the personal computer,
the Internet and electronic banking,'' said a BAKred spokeswoman.
``There has not been a specific instance where something has gone
wrong.''

The watchdogs will target the biggest banks and brokers who conduct a
large portion of their business over the Internet.

Germany is home to Europe's biggest Internet brokers, comdirect bank
AG, Consors Discount-Broker AG, and Direkt Anlage Bank AG.

``Communication between the bank and its client over the open network
of the Internet carries with it the danger that sensitive data could
be spied upon, falsified, destroyed or misused,'' BAKred said in a
statement.

``System break-ins or virus attacks on e-banking could influence
clients' trust in secure electronic settlements over the long term,''
the watchdog added.

BAKred said it planned to meet with 10 of Germany's leading electronic
banks by the autumn but declined to name names.

``If serious deficiencies are discovered, then it will first be
discussed. It is a new field so we won't jump right in with sanctions,
rather, they will first be given the chance to improve things,'' the
spokeswoman said. (Reuters)

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