New FSA help for consumers on making the most of the internet

The financial watchdog has published new pages on its Consumer Help website giving tips on more secure use of online services, and getting maximum benefit from the opportunities offered by the Internet. These include four simple steps to safer use of online financial services:

• Know who youre dealing with
  
• Check for a secure connection
  
• Use passwords and PIN numbers sensibly
  
• Protect your computer from viruses.

Research commissioned by the FSA shows that four in ten of those using Internet banking or stockbroking services use easily-guessed passwords, such as their name, birthday or the word password. In a discussion paper, The FSAs approach to the regulation of e-commerce, also published today, the FSA emphasises that Internet security is a responsibility shared between firms and consumers, and sets out what consumers can do to help themselves.

FSA Consumer Director, Christine Farnish, said:

The Internet offers a new way of accessing a wide range of financial products and services which can be quicker, easier and cheaper than existing channels of delivery.

But, with nearly one in ten Britons using the Internet to carry out personal banking, it is vital that consumers are properly prepared for using online financial services, and understand what they can do to address the risks involved. New pages on our website today offer valuable tips on which financial services are available online, how best to shop around for the best deal, and what precautions you should take to help ensure Internet transactions are safe and secure.

As well as the risks many consumers face in using online financial services, todays paper also considers the role of firms in putting proper IT controls and systems in place, and ensuring their security precautions are user-friendly in an environment of multiple passwords and PIN numbers.

Security tips for consumers using online financial services include:

• Choose your passwords carefully dont use obvious names or numbers, like your account name, date of birth or the word password; instead try to ensure your password and log-in details are unique and not easily guessed.
  
• Memorise your passwords and security information try not to write down passwords or security information, but if you must, dont leave them where they can be easily found (next to your computer, for example); dont write everything down in the same place; and try to disguise them so that their purpose isnt obvious.
  
• Dont store your password on your PC it may take a bit longer, but its much safer to type in your password each time you access the service.
  
• Dont access sensitive information in a public place if you need to do so, either at work or in a library or internet cafe, for instance, make sure no-one can see the screen over your shoulder; never leave the computer unattended; and always close down the internet browser program when youre finished to clear any security information from the PC.
  
• Check that youve logged on to a firms genuine website some bogus websites may deliberately use a name or address very similar to that of a genuine firm, so always check the web address youve typed is the correct one before providing personal security information, and dont continue if you think theres anything odd about the website.
  
• Check the connection between you and the firm is secure ask the firm if your transaction data is encrypted, and look for a closed padlock or similar security symbol on your screen, or https in the web address box to indicate encryption is taking place.
  
• Try to protect your PC from viruses make sure your computer has anti-virus software and keep it updated.
  
• Check the firm youre dealing with is authorised call the FSA Consumer Helpline on 0845 606 1234, or check the Central Register direct at www.thecentralregister.co.uk.

These and other tips for online consumers are published today on the FSA Consumer Help web pages at www.fsa.gov.uk/consumer

The FSA will host a conference on the implications of e-commerce for the financial services industry on Wednesday 20th June. Among those attending will be representatives from the FSA, the financial services industry, and the FSAs Consumer Panel. Further details are available on the FSAs website at www.fsa.gov.uk, or from the FSA Events team on 020 7066 0098.

Notes for editors

1. Copies of The FSAs approach to the regulation of e-commerce are available from the FSA Publications line on 0845 608 2372, or can be downloaded from the FSA website at www.fsa.gov.uk

2. The FSA commissioned research on consumers use of security precautions through the Office of National Statistics Omnibus Survey. Other findings are summarised in the Discussion Paper.

3. The FSA regulates the financial services industry and has four objectives under the Financial Services Act 2000; maintaining market confidence; promoting public understanding of the financial system; the protection of consumers; and fighting financial crime.

4. The FSA aims to maintain efficient, clean and orderly financial markets and help retail consumers achieve a fair deal.