Wichita Eagle | 08/06/2006 | Feds press banks to fortify security
Wichita Eagle | 08/06/2006 | Feds press banks to fortify security: "Federal regulators are pushing banks and other financial institutions to make their Internet banking systems more secure.
They're specifically focused on identity theft. Last month, federal regulators announced a proposed rule for banks, financial institutions and credit card companies to develop an identity theft prevention program for new and existing customer accounts.
More pressing is a rule announced last year that requires banks and financial institutions to have in place at the end of this year a beefed-up system of ensuring a customer's identity when using Internet banking systems.
It's something that industry officials said could cost banks tens of thousands or hundreds of thousands of dollars to implement.
'As an industry we have to have the ultimate protection,' said Steve Carr, president of Community Bank of Wichita, which has $37 million in assets.
'If it costs extra money, we'll spend it. We don't like it, but that's what we have to do.'"
Comment: Note the banker saying "we don't like it" to spending money on beefing up security. "But that's what we have to do" is a must if it's federally mandated by law. Duh! It just shows business aren't in the business of protecting identities or providing good security - unless they're forced to.
They're specifically focused on identity theft. Last month, federal regulators announced a proposed rule for banks, financial institutions and credit card companies to develop an identity theft prevention program for new and existing customer accounts.
More pressing is a rule announced last year that requires banks and financial institutions to have in place at the end of this year a beefed-up system of ensuring a customer's identity when using Internet banking systems.
It's something that industry officials said could cost banks tens of thousands or hundreds of thousands of dollars to implement.
'As an industry we have to have the ultimate protection,' said Steve Carr, president of Community Bank of Wichita, which has $37 million in assets.
'If it costs extra money, we'll spend it. We don't like it, but that's what we have to do.'"
Comment: Note the banker saying "we don't like it" to spending money on beefing up security. "But that's what we have to do" is a must if it's federally mandated by law. Duh! It just shows business aren't in the business of protecting identities or providing good security - unless they're forced to.
posted by Henry at 9:17 PM
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