Internet Banking Risk Assessment and Customer Education
On June 28, 2011, the FFIEC issued a supplement to the Authentication in an Internet Banking Environment guidance released in October 2005. The purpose of the supplement is to reinforce the guidance's risk-management framework and update the Agencies' expectations regarding customer authentication, layered security, or other controls in the increasingly hostile online banking environment.
According to the new supplemental guidance, your financial institution is required to:
- Perform a periodic Internet Banking Risk Assessment that considers new and evolving threats to online accounts
- Institute a system of layered security controls designed to mitigate the risk, adjusting customer authentication, layered security, and other controls as appropriate in response to identified threats
- Provide customer awareness and education on the risks of online banking
The Agencies (Federal Reserve, FDIC, NCUA, OCC, and OTS) expect financial institutions to comply with the guidance no later than January 1, 2012.
CoNetrix has developed a solution to help financial institutions go through the risk assessment process and provide customer awareness and education. The new tandem Internet Banking Risk Assessment and Customer Awareness Program is a stand-alone module integrated with the tandem Security & Compliance online software. The program is divided into two components:
- The Internet Banking Risk Assessment features an easy step-by-step process with a questionnaire to identify risk levels and help you assign layered controls to mitigate risk. Your risk assessment is customizable based on your financial institution's unique situation.
- The Customer Education/Awareness Program will provide your financial institution with the tools to deliver education and security awareness to your customers.
Be ready for your exam with the tandem Internet Banking Risk Assessment and Customer Awareness Program before the January 2012 deadline.