R. Kinney Williams & Associates
R. Kinney Williams
& Associates

Internet Banking News

April 11, 2004

CONTENT Internet Compliance Information Systems Security
IT Security Question Internet Privacy Website for Penetration Testing


FYI  -
Key-logging phishing scam targets internet banking users - The combination of an exploit of a serious vulnerability in Internet Explorer (IE) and a phishing email is posing a serious threat to Internet banking users.   http://www.silicon.com/software/security/0,39024655,39119764,00.htm

FYI  -
Australians face devious phishing scam - A sophisticated scam directs users to a site that installs a key-logging program on their PC then redirects them to a genuine online banking site.  http://news.zdnet.co.uk/internet/security/0,39020375,39150726,00.htm

FYI - Security scare for business laptops - Business travelers are unwittingly making company secrets available to rivals by ignoring the risks of local wireless networks, known as wi-fi hotspots, security experts warn.  http://news.ft.com/servlet/ContentServer?pagename=FT.com/StoryFT/FullStory&c=StoryFT&cid=1079420167575&p=1012571727085

FYI - FDIC Issues Warning About Fraudulent E-mails - The FDIC has received complaints from consumers who received an e-mail that appears to have been sent by the FDIC. The e-mail is purportedly from security at fdic.com and the subject is fraud report. www.fdic.gov/news/news/press/2004/pr3804.html

FYI - BJ's announces security clampdown after credit card theft - BJ's Wholesale Club has tightened computer security after finding that its customers' credit card information might have been stolen, forcing banks and financial institutions to replace thousands of credit and debit cards.  http://www.miami.com/mld/miamiherald/business/8312759.htm

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INTERNET COMPLIANCE
Fair Housing Act

A financial institution that advertises on-line credit products that are subject to the Fair Housing Act must display the Equal Housing Lender logotype and legend or other permissible disclosure of its nondiscrimination policy if required by rules of the institution's regulator.

Home Mortgage Disclosure Act (Regulation C)

The regulations clarify that applications accepted through electronic media with a video component (the financial institution has the ability to see the applicant) must be treated as "in person" applications. Accordingly, information about these applicants' race or national origin and sex must be collected. An institution that accepts applications through electronic media without a video component, for example, the Internet or facsimile, may treat the applications as received by mail.

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INFORMATION SYSTEMS SECURITY
- We continue our series on the FFIEC interagency Information Security Booklet.  


SECURITY CONTROLS - IMPLEMENTATION - DATA CENTER SECURITY


When selecting a site for the most important information systems components, one major objective is to limit the risk of exposure from internal and external sources. The selection process should include a review of the surrounding area to determine if it is relatively safe from exposure to fire, flood, explosion, or similar environmental hazards. Outside intruders can be deterred through the use of guards, fences, barriers, surveillance equipment, or other similar devices. Since access to key information system hardware and software should be limited, doors and windows must be secure. Additionally, the location should not be identified or advertised by signage or other indicators.

Detection devices, where applicable, should be utilized to prevent theft and safeguard the equipment. They should provide continuous coverage. Detection devices have two purposes - to alarm when a response is necessary and to support subsequent forensics. The alarm capability is only useful when a response will occur. Some intruder detection devices available include:

! Switches that activate an alarm when an electrical circuit is broken;
! Light and laser beams, ultraviolet beams and sound or vibration detectors that are invisible to the intruder, and ultrasonic and radar devices that detect movement in a room; and
! Closed-circuit television that allows visual observation and recording of actions.

Risks from environmental threats can be addressed somewhat through devices such as halon gas, smoke alarms, raised flooring, heat sensors, and the like.

Physical security devices frequently need preventive maintenance to function properly. Maintenance logs are one control the institution can use to determine whether the devices are appropriately maintained. Periodic testing of the devices provides assurance that they are operating correctly.

Security guards should be properly instructed about their duties. The employees who access secured areas should have proper identification and authorization to enter the area. All visitors should sign in and wear proper IDs so that they can be identified easily. Security guards should be trained to restrict the removal of assets from the premises and to record the identity of anyone removing assets. Consideration should be given to implementing a specific and formal authorization process for the removal of hardware and software from premises.

The following security zones should have access restricted to a need basis:

! Operations center
! Uninterrupted power supply
! Telecommunications equipment
! Media library

CABINET AND VAULT SECURITY

Protective containers are designed to meet either fire-resistant or burglar-resistant standards. Labels describing expected tolerance levels are usually attached to safes and vault doors. An institution should select the tolerance level based on the sensitivity and importance of the information being protected.


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IT SECURITY QUESTION:

D. USER EQUIPMENT SECURITY (E.G. WORKSTATION, LAPTOP, HANDHELD)

6. Determine whether appropriate workstations are deactivated after a period of inactivity through screen saver passwords, server time-outs, powering down, or other means.


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INTERNET PRIVACY
- We continue our series listing the regulatory-privacy examination questions.  When you answer the question each week, you will help ensure compliance with the privacy regulations.

40.  Does the institution provide at least one initial, annual, and revised notice, as applicable, to joint consumers? [9(g)] 

 

PLEASE NOTE:  Some of the above links may have expired, especially those from news organizations.  We may have a copy of the article, so please e-mail us at examiner@yennik.com if we can be of assistance.  

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Company Information
Yennik, Inc.

4409 101st Street
Lubbock, Texas 79424
Office 806-798-7119
Examiner@yennik.com

 

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