The internet works well as a channel for providing financial services but the news that surface from time to time about data copying and data phishing create a lot of insecurity for many people with regard to electronic financial services.

Security is a constant requirement for electronic payments and service providers are continuously engaged in developing and establishing systems for protection on multiple levels.

The tools listed hereunder are also used to enhance the security of Internet banking:

• The so-called SSL (Secure Socket Layer) security protocol provides an encrypted channel for secure connections between computers communicating with each other. The SSL protocol secures only the transmission channel but does not enable the identification of the parties.

• Almost all banks and investment service providers employ identification systems with multiple levels, i.e., they require a username, a password and additional security codes that represent an additional level of security each.

• So-called multi-channel systems, represent an even higher level of security where customers must identify themselves not only on the computer but also using some other tool, such as:
  1. Requesting SMS notifications about successful attempts to login to the system and about the dates and times of such;
  2. Time slot function that allows active operations within the system for 5-10-15 minutes following a call initiated from a pre-specified mobile phone number and blocks operations once the pre-defined period of time has expired;
  3. A similar solution is to send a single-use code to a pre-determined mobile telephone;
  4. A token, which is a device that generates random numbers totally independently of the computer and which is protected with a separate PIN code. The customer must enter the PIN code to receive the actual identification code to be used for logging in over the Internet.

• Another security-enhancing method is for Internet banks to monitor the number of identification and login attempts and to ban the customer from the system following a specific number of failed attempts – usually 3-5 –, and also to interrupt the connection if the customer remains inactive for a few minutes.

• Other security-enhancing methods include chip card systems. By 2008 most Hungarian banks will issue cards with an EMV chip in addition to the magnetic stripe to make counterfeiting more difficult. The EMV specification, an abbreviation of Europay-MasterCard-Visa, will enhance security when using bank cards on the Internet, or on any other open network, for transactions in electronic commerce.

• We should also mention so-called web cards, which were specifically developed for on-line shopping. Before shopping on-line with a web card, which also has an associated card number, you need to charge it with just the amount of money that you wish to spend while shopping on-line. By using a web card for shopping you can eliminate potential abuses with the number of the bank card.

• Everybody is responsible for the security of his/her own computer, it is therefore important to have an active firewall installed. A firewall is a piece of software or a hardware device that integrates itself into the process of communication and monitors and regulates the flow of data. Firewalls are normally used to protect computers connected to the Internet and to protect local networks, to prevent access by unauthorised persons to the network and to the data stored on the computer.

• In addition, it is also important to have antivirus software installed on the computer. The purpose of antivirus software is to ensure that files that could cause harm, perform unauthorised data collection or execute any other operations not authorised by the user are prevented from reaching the network or a specific computer. Nowadays there are a number of antivirus software programs available that are simple to use and update and free to download. Antivirus software can be used to remove viruses at regular intervals, but these software products are also capable of continuously monitoring a computer’s communication flow and screening out harmful files.

When using a financial service over the Internet inform yourself thoroughly of its safety aspects to ensure not only maximum comfort, but also maximum protection in its later use!