• by Seana Mulcahy , February 26, 2007

If it could happen to me, it could happen to you: online banking fraud. Not the fraud that automatically comes to mind though. Not the kind we all write about. No one took my identity and went on a shopping spree in multiple locations at the same time. In fact, it took me a long time to be able to pinpoint just what was happening to me.

Let me take a step back for a moment. You've been online for a long time, right? You've shopped for presents, for your family and yourself. You've bought airline tickets and booked hotels and rental cars for business and for pleasure. You've probably purchased and downloaded music for your iPod or MP3 player, too. What else? How 'bout online bill paying? Better yet, how about banking online?

I have a friend who still goes to one of the few community banks. She is always in a rush to get there before it closes. This happens a good once or twice a week. I've been with her when she cruises up in her car, double-parking and jumping out within moments of the door being locked and the sign being flipped over. I've watched her as the people inside all smile knowingly. She says hello to several people. Others she gives knowing glances to. She banks, talks, laughs, and is done within moments. I tend to stay outside and watch from the window. I realize I am very much on the outside looking in. To me it's like looking at a Norman Rockwell painting; a friendly slice-of-life.

I realize as a consumer in an online environment I am definitely not the norm. No, I don't trust all sites. I carefully look at privacy policies before I engage, interact and transact. In fact, I went through this routine quite thoroughly with online banking.

According to new data from the Pew Research Center and reported by eMarketer, over a quarter of U.S. adults now pay at least part of their monthly bills online. .

CRM Today posted a report noting that an estimated 58% of U.S. adults with Internet access conduct personal banking over the Internet, according to a December 2006-January 2007 Prophis eResearch representative survey of 990 U.S. online adults.

Additional findings include:

48% of this group does more of their banking over the Internet now than 12 months ago.

27% of adults that bank over the Internet are more concerned about Internet security issues than they were 12 months ago.

12% are less concerned about security issues than they were 12 months ago.

58% of those currently conducting personal banking online believe that it is "extremely necessary" for their financial institution to "improve Internet banking security." .

I'd love to ask you some questions and have you answer them on the Spin blog. I'll compile findings and share them with you next week. So if I may: Do you bank or pay bills online? If so, do you pay bills via your bank's online banking interface or via your payees? Do you find your bank's online services secure? Would you know what to do in case there is a problem with your account? What if you suddenly see funds missing? What concerns do you have about this online environment?

I'd love to get all the feedback I can. Join me next week for part two of this story. You're never going to believe what happened to me...