Over the past twenty years the banking system has changed and become more efficient for bank customers. Twenty years ago bank customers could not login to their bank account on the Internet and transfer money. However, as the Internet has developed so has online banking. As more people use online banking services the amount of cyber criminals that focus on accessing bank accounts has increased. To log into a bank account in the U.S. a password and security question is needed, in other countries such as Sweden electronic-ID is used to login to a bank account. Because of the current security system in the U.S it makes it easier for cyber criminals to access bank accounts through phishing websites. Phishing websites look similar to bank websites
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It is common that cyber criminals send out emails to people with a link to a phishing website. For example, cyber criminals send out emails about fake bills that bank customers forgot to pay and if a bank customer believes in the email they will enter their online banking information on the phishing website. If a bank customer enters their login information on a phishing website the cyber criminals who created the website will get the login information right away. When cyber criminals have collected login information to bank accounts they are able to login and steal money from bank accounts by transferring money. If e-ID would be use instead this type of loss event would not occur because bank customers would not have a permanent password, instead e-ID would create a temporary …show more content…
If bank customers would use e-ID cyber criminals will not able to gain any login information through phishing websites because e-ID creates a temporary code when the bank customer starts the program. To implement e-ID as a security system for banks would have annual costs and a one-time cost. The one-time cost for the banks all together is estimated to be between $600,000,000 and $774,000,000. The annual costs for e-ID is estimated to be about $694,000,000 (BBC Monitoring European). It is estimated that the amount it costs for Germany to implement e-ID is about the same for the U.S. banks because the German population is about the same as the amount of online bank users in the U.S. Although it does cost a large amount of money to implement e-ID for banks, it will benefit the banks in the long run. The average losses for banks in the U.S. are at $4.7 billion and if banks choose to implement e-ID the banks will save all together about 4 billion USD a year if the losses are at average. If e-ID would be implemented the banks could have their security department focus on other tasks rather phishing websites, which also would save the banks
It is common that cyber criminals send out emails to people with a link to a phishing website. For example, cyber criminals send out emails about fake bills that bank customers forgot to pay and if a bank customer believes in the email they will enter their online banking information on the phishing website. If a bank customer enters their login information on a phishing website the cyber criminals who created the website will get the login information right away. When cyber criminals have collected login information to bank accounts they are able to login and steal money from bank accounts by transferring money. If e-ID would be use instead this type of loss event would not occur because bank customers would not have a permanent password, instead e-ID would create a temporary …show more content…
If bank customers would use e-ID cyber criminals will not able to gain any login information through phishing websites because e-ID creates a temporary code when the bank customer starts the program. To implement e-ID as a security system for banks would have annual costs and a one-time cost. The one-time cost for the banks all together is estimated to be between $600,000,000 and $774,000,000. The annual costs for e-ID is estimated to be about $694,000,000 (BBC Monitoring European). It is estimated that the amount it costs for Germany to implement e-ID is about the same for the U.S. banks because the German population is about the same as the amount of online bank users in the U.S. Although it does cost a large amount of money to implement e-ID for banks, it will benefit the banks in the long run. The average losses for banks in the U.S. are at $4.7 billion and if banks choose to implement e-ID the banks will save all together about 4 billion USD a year if the losses are at average. If e-ID would be implemented the banks could have their security department focus on other tasks rather phishing websites, which also would save the banks