FDIC examiner David Nelson claims that online banking fraud, which typically involves the electronic transfer of funds, has steadily risen since 2007, as the malware continues to grow more common and sophisticated.
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"Online banking customers are getting too reliant on authentication and on practicing layers of controls," he told BusinessWeek. "Commercial deposit accounts do not receive the reimbursement protection that consumer accounts have, so a lot of small businesses and nonprofits have suffered some relatively large losses."
Nelson says hackers typically target higher funds accounts and small businesses whose security controls might not be as stringent as a major corporation.
Avivah Litan, a financial analyst with Gartner, predicts that identity theft and consumer fraud will increase in the coming years, as password-stealing botnet programs are also on the rise.