Security of On-Line Banking Studied

By Hyman, Julie | The Washington Times (Washington, DC), August 4, 1999 | Go to article overview
Save to active project

Security of On-Line Banking Studied

Hyman, Julie, The Washington Times (Washington, DC)

Congressional investigators said yesterday that the 6 million Americans who bank on line may be getting convenience at the expense of security.

According to the General Accounting Office, 44 percent of banks, thrifts and credit unions it surveyed have not enacted strict enough measures to keep their computer systems safe from hackers.

The report was released at a hearing of the House banking subcommittee on monetary policy. Lawmakers shied away from suggesting regulation as a solution to on-line banking security, but said both banks and consumers must address the risks.

"We don't want to overregulate the activity to the point that we unduly dampen it or retard its growth," said Rep. Spencer Bachus, Alabama Republican. "At the same time, the public has the right to safety and soundness in Internet banking, so we can't walk away from it."

Consumers who bank over the Internet use Web sites to transfer money between accounts, pay bills, check account or investment balances and apply for loans.

The GAO report concluded that Internet banking is by nature riskier than conventional banking. Its review of banking regulators' examinations of 81 financial institutions found that 35 of them, about 44 percent, hadn't taken all the risk-limiting steps regulators have said are needed.

Mr. Bachus said Internet banking is projected to grow 20 to 25 percent by 2004, making it necessary to be vigilant about hackers.

"All the banking representatives agreed that we need to prosecute [hackers who break into on-line accounts] and we need to publicize it."

He noted that the hearing was just the first stage in a congressional look at on-line banking that could help increase Internet security before consumer use explodes.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this article

Cited article

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Security of On-Line Banking Studied


Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?