TSB warns customers to beware online scammers amid IT chaos – RiskIQ comments

With TSB customers facing a second week of being locked out of their online banking and mobile apps, the bank has issued a new warning to customers. In a tweet*, it warned more than five million customers that fraudsters have been attempting to take advantage of its IT breakdown to trick people into handing over information that could enable them to steal their money. The bank has urged customers to familiarise themselves with the ‘Take Five’ initiative.

Fabian Libeau, EMEA VP at RiskIQ, the digital threat management specialist, offers the following comment on the brand and reputational impact of digital fraud:

“This phishing warning will come as a second blow to TSB customers after what has been a frustrating fortnight – having been locked out of their online banking accounts, without instant access to their money and unable to use mobile apps. However, the unfortunate truth is that this is nothing new, and we have all heard this story many times before. Financial institutions are a much-loved target for hackers, given the highly-sensitive and valuable information they’ve been entrusted with – and with TSB’s widely publicised IT fiasco, it is no wonder that cybercriminals are queuing up for an opportunity impersonate the bank online.

“Phishing is a highly-successful tactic – hackers are constantly innovating and creating new methods to lure victims into handing over access to their financial details, personal information and ultimately their bank accounts. In fact, our recent report**, which details trends in phishing activity, revealed that financial institutions are almost always the target of the highest volume of attacks – capturing 40 percent of all phished brands. This campaign targeting TSB customers should be a major wake-up call for other financial institutions to make digital threat management a priority, so that they can use real-time intelligence to find, confirm, and take down phish. After all, customers will always place blame on the bank being impersonated for failing to protect its brand, and this will have a detrimental effect on both profitability, consumer confidence and overall reputation – three things that financial organisations absolutely need to survive.”