Online fraud rises at many banks

Of the top US banks, 38 percent have seen an increase in online banking fraud losses in the past 12 months, according to a new report.

The report was issued today by the Aite Group LLC, a Boston-based research and advisory firm focused on business, technology, and regulatory issues and their impact on the financial-services industry.

"Banks are still in the midst of upgrading their fraud-monitoring and authentication capabilities, and they will keep purchasing such technologies within the next 24 months," Gwenn Bezard, the firm's research director and co-author of the report, said in a statement. "The investment rage hasn't spread over to the phone channel yet. However, online account opening risk mitigation, Malware, and mobile banking security will be the next set of hot button issues that get attention."
(By Chris Reidy, Globe staff)