HSBC vs ICBC -- Online banking security

• Virtual Bank 基于互聯網的纯純粹的银網絡銀行
• Mixed Operation 依托非银銀行金融机构的混業經營业经营模式
• Online Branch 依托传统银傳統銀行的模式

On-line payment in Mainland China

• Authentic-looking website address

• logon numbers, passwords, code cards & money will be stolen.

• 2. Do not open the remote assistance features of tools such as operating system, MSN and QQ. Please only confirm the payment after checking the payment sum and the order sum.

Online Banking Models

Agenda

1. Background of online banking:

Definition, Models, Comparison, Trend and Requirement

2. HSBC vs ICBC

* History & Online Banking Functions

* Security Flaws

* Security Device

* Challenges & Tips

HSBC VS ICBC

Agenda

Online Banking VS Traditional Banking

• 1. Background of online banking:

Definition, Models, Comparison, Trend and Requirement

• 2. HSBC vs ICBC
• History & Online Banking Functions
• Security Flaws
• Security Device
• Challenges & Tips

Online Banking VS Traditional Banking

What’s Online Banking

Online payment security system

Part 1:

Background of online banking

Done by

Venus Candy Cathleen Danny

Advantages of traditional banking

• Human interaction
• Sense of security
• Paper history

• an electronic connection between bank and customers in order to prepare, manage and control financial transactions (Burr, 1996).

Advantages of online banking

• Convenience (3A)
• Time saving
• Money saving
• Auto Fund Transfer
• Sophisticated tools
• Customization
• RELIABLE

*

History Review

HSBC:32 branches in Mainland China

Functions of online Internet banking

Requirement of Online Banking Application

Trend of Online Banking

HSBC Personal Internet Banking

Part 2: HSBC VS ICBC

---History & Online Banking Functions

• Wealth management
• Account enquiries
• Global view
• Transfer and Remittances
• Exchange rate/ interest rate enquiries
• Term deposits
• Other supporting services

• Traditional method – physical bank branches
• 1. competition in financial services industry
• 2.technological evolution
• 3.globalization
• 4.client seek for convenience and accessibility
• Strategy – Increase service distribution channel + Reduce operational cost

Sources: http://www.hsbc.com.cn/1/PA_1_083Q9FFKG80E20RA9Q00000000/content/china/about/docs/factsheeten.pdf

HSBC Business Internet Banking

ICBC Personal Internet Banking

HSBC Business Internet Banking

ICBC Business Internet Banking

Functions of online Internet banking

HSBC Personal Internet Banking

• AutoPay 批量轉帳

• SME’s bank
• Ease, convenience and security

• Standard Edition

account management, custom front page, password protection and loss reporting

• A predetermined amount on designated dates
• Ideal for recurrent high-volume, low-value transactions

• HSBC Global Transfer (Nov. 5th,2011)

between self-named HSBC accounts in different countries

On-line real-time foreign currency service

• SME’s Edition more user-friendly and practical

Part 3: HSBC VS ICBC

---Security Flaws

安全隱患

• Online FX Conversion (Nov.28th,2011)

on-line instructions for both FCY to CNY conversion and CNY to FCY conversion

ICBC Users’ Union

Example of Organized Crime

Security Flaws

Phishing Website and Email 釣魚網站/郵件

Organized Crime 犯罪團夥

Virus, Worm, Hacker-

System Loophole 利用網銀系統漏洞

Virus, Worm, Hacker-

System Loophole

• Similar web page and content

72%

26%

• USB-Shield must be inserted into the computer
• Trojan horse embed & infect USB-Shield if forget to pull it out 植入克洛伊木馬病毒
• Successfully steal money

• Valid time may be too long密碼有效期長

• Unsafe if once the bank authentication server system is breached （破解銀行認證服務系統）by hackers

2%

http://www.ak.cn

Statistics from: Kingsoft in 2011

Other ways

Five codes of practice（五大重要守則）

Five codes of practice（五大重要守則则）

USB Shield(U盾) –Best Choice of Personal Internet Banking Security

Online Security Scan – the PC's Physical Exam for Safer Internet Banking

• New E-Banking Security Tool – E-Banking Code Card
• （電子銀行电口令卡）

Personal fire wall

个人防火墙墻

Part 4: HSBC VS ICBC

--- Security Device

McAfee, Symantec (Norton), and Sophos

Antivirus software防毒軟件

Update security software and patch program

安全套件更新及补補丁程序

Zone Labs， McAfee and Computer Associates

Tips

Challenge

Tips

Security PIN PAD Device (安全密碼器)

Security PIN PAD Device (安全密碼码器)

• 3. Avoid fraudulency of fake ICBC website.

Passwords

使用密碼注意事項

No same codes

No related personal information

• 1. Click the "Secure Log Out" button on the up-right part of the page to terminate the use, and meanwhile remove the USB-Shield and keep it safely.

1. May,9,2012 , FED(the Federal Reserve) (美联储) declared that ICBC was allowed to conduct business in America.

Part 5: HSBC VS ICBC

--- Challenges & Tips

2. No green channel for the disabled, especially the blind.

McAfee, Spybot Search and Destroy, AdAware, Spyware Eliminator, Spyware Doctor and Microsoft antispyware

4. If you use the business models of "USB-Shield + SMS Verification" or "E-Banking Code Card + SMS Verification", please carefully check whether the SMS codes, payee account and trade amount is in accordance with the current transaction.

3. No search function about announcements of service charge standard on official web site

Antispyware 反間諜軟件

References

THANKS FOR LISTENING

• http://tech.ifeng.com/internet/detail_2012_05/18/14623909_0.shtml
• http://tech.ifeng.com/internet/detail_2012_05/19/14661482_0.shtml
• http://www.ak.cn/shilu5.htm
• http://bank.jrj.com.cn/2007/07/000002389280.shtml
• http://bbs.kblcw.com/thread-296038-1-1.html
• http://image.baidu.com/

• http://www.hsbc.com.cn/1/PA_1_083Q9FFKG80E20RA9Q00000000/content/china/about/docs/factsheeten.pdf
• http://en.wikipedia.org/wiki/Industrial_and_Commercial_Bank_of_China
• http://wenku.baidu.com/view/84dd23a40029bd64783e2c10.html
• http://www.icbc.com.cn
• http://www.hsbc.com.cn
• http://www.igi-global.com/viewtitle.aspx?titleid=46226&sender=bf39a157-44a6-42d6-87cb-6e58938897e5