Consumers Think Online Banking Sucks

Banks are continuing to feel the sting of their own cyber-incompetence. After much publicized security breaches like the Citibank scandal, more and more customers are moving away from online banking due to fears of identity theft. The growth of online banking as an industry in 2005 was only 3.1%, sharply down from the growth of previous years.

Bank of America came out on tops the most widely used online banking solution, but even there, some astonishing breaches of customer’s privacy came to light last year. In 2005, Bank of America lost a number of tapes with the financial records of tens of thousands of federal clients. Furthermore, Bank of America’s employees attempted to sell half a million customer records to the highest bidder. And this is one of the most trusted online banking solutions.

Can anyone blame customers from moving away from online transactions? The banks we trust with our most private and sensitive information continue to betray us, inconveniencing their own legitimate users while handing over millions of dollars to Eastern European scam artists like rubes. With banks starting to consider charging for increased security, it’s no wonder so many people are flipping these idiots the bird.

Consumers Lose Faith in Online Security [Consumer Affairs]