Many banking organizations have received complaints from their customers regarding the loss of money from cyber-thieves. Hence, many bank organizations have lost a large portion of their revenue to cybercrime reducing their competitiveness in this industry. In addition, the organizations lose their customers who feel that they do not get enough security of their money in these organizations. Therefore, the system designers are now facing a serious challenge of having to protect the organization from cybercriminals who each discovering new approaches of stealing from organizations.
Identity theft is the illegal and the unconsented acquisition of another person’s personal information such as identity card number, bank account number and password with an intention of using it in fraudulent operations. With the current embrace of technology in the business sector, the internet has become a new platform for theft especially with most internet users being ignorant of their privacy and security in their online presence. In the US, the banking sector loses over £1 billion every year to identity theft which is already sending warning signals to the online bankers.
With more banks venturing in online services and online financial transfer is dominant in these sectors, the banks and the customers are at a very high risk of losing their money to fraudsters. Statistics indicate that the number of cases of identity fraud increased in the recent past (Ryckman 12). In 2010 and 2012, the US banking industry has registered a loss of 80 and 101.3 dollars, which marks an increase of about 27% in financial loss (PR, Newswire Para. 1). As more customers complain about the loss of their monies, victim organizations continue to experience loss both in terms of money as well as the outflow of customers. .