BIZCHINA / Weekly Roundup
Firms bank on secure transactions
By Zhang Ran (China Daily)
Updated: 2007-03-27 08:56
On March 17, Huang Anquan, a stock investor in East China's Fujian
Province, found a mysterious 10-million-yuan deposit in his account with
Fuzhou-based Guangfa Huafu Securities. It disappeared from his account a
day later.
The brokerage firm told Huang the money appeared in his account because
of a temporary breakdown of the firm's IT transaction system. The story
later changed, with the firm insisting the deposit appeared because of
Internet testing it was carrying out.
The firm's responses did nothing to ease Huang's doubts about the
security of his Internet transactions. The error was reported by the
Economic Information Daily, raising security concerns among stock
investors.
A recent survey conducted by Unisys Finance Services, part of Unisys, a
worldwide leading IT solutions provider, showed that while burgeoning
electronic storage and transmission of data has provided convenience and
value for consumers and businesses alike, it has also created
opportunities for criminal activities.
Security is paramount if financial services firms are to earn their
clients' trust.
Several online brokerage firms reported in October 2006 that hackers had
entered their computer systems and made unauthorized trades, resulting in
millions of dollars worth of customer losses.
Cases of lost, stolen or exposed personal data are frequently in the
headlines. This raises doubt as to whether any institution can be trusted
with funds or personal information.
A Unisys survey of 6,492 bank and credit card account holders from eight
countries in 2005 found that two-thirds of the respondents worried about
identity fraud and the safety of their bank and credit card accounts.
These concerns pose a serious challenge to many businesses and other
organizations that are custodians of personal information. But the
challenge is particularly acute for banks and brokerage firms, for which
security, trust and business performance are so entwined.
"The challenge more than just to pay lip service to the relationship
between security, trust and business performance is to put appropriate
processes and technology in place to support those processes," said
Reuben Khoo, vice-president and managing director of Unisys Financial
Services Asia Pacific.
As an IT solutions supplier, Khoo helps banks improve their client
relationship management.
Guo Tianyong, director of the banking research center at the Central
University of Finance and Economics, said Chinese banks' IT
infrastructure, especially at emerging commercial banks, was still at a
lower level compared to their foreign rivals.
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