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HSBC denies online accounts vulnerability

Tuesday 15 August 2006 04:52

HSBC has played down reports that a flaw in its online banking system could give fraudsters using keylogging software easy access to millions of customer accounts.

Antonia Jones, who led a research team from Cardiff University, last week claimed criminals could potentially crack HSBC accounts “within five attempts, and definitely within nine”.

The bank rebutted the claim of an unspecified vulnerability, calling it a “supposed flaw” and said, “We are satisfied our customers are adequately protected.”

HSBC also said that Jones’s warning overlooked the fact that the system would lock out a hacker after three failed attempts to log on.

“Our three million regular users of online banking only log in on average once every other day, so for a hacker to make up to nine attempts to get into the system could easily take a week. This is not how hackers usually operate,” the bank said.

John Colley, president of global information security certification body (ISC)2, said Trojans posed a bigger risk to online banking than key loggers.

“Trojans will not only record the keys pressed, but will also record the mouse movements and what is on the screen. If you are using a drop-down menu, the Trojan would pick up what you are pointing to.”

However, Colley said online banking was essentially secure. “To the man in the street there is virtually no risk unless they do something stupid, such as bank from an internet cafe.”

HSBC is continuing to look at ways to improve security. Earlier this year, it rolled out a two-factor authentication system to its business customers for online banking.

Since May, the bank has been issuing its 180,000 UK business customers with Vasco secure tokens, following successful deployments in the US and Hong Kong.

Read article:  Why we must shout about IT security

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