Benevolent Hackers Shoot Holes in eBanking Systems

ONLINE banking fraud doesn't just affect the naive. Last year, Robert Mueller, a director at the US Federal Bureau of Investigation, admitted he'd come within a mouse-click of being a victim himself. Now the extent of the problem has been brought into sharp relief, with computer scientists warning that banking culture is increasing the likelihood that customers are using vulnerable systems.

The convenience of online banking and electronic money has led to a revolution in the way we save and spend our earnings. Banking websites and payment systems are relentlessly targeted by criminals, though, so continuous improvements in security are needed to prevent fraud. But as was revealed at this week's Financial Cryptography and Data Security conference in Tenerife in the Canary Islands, some of the best-known security systems can still be compromised relatively easily.

All too often, banks' security systems are developed in secret, so their flaws are only identified when they are deployed, says Steven Murdoch, a security researcher at the University of Cambridge. This opens a window of opportunity for criminals.

Weaknesses in three widely used financial security systems highlight the extent of the problem. These systems, used by millions of people every day, can in some cases be breached using off-the-shelf technology and a little persistence, says researchers at the cryptography conference.

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