Most Bank Fraud Occurs Offline

An article in today's Wall Street Journal (yes, there is now a weekend edition) suggests that most identity theft and banking crimes occur offline in the physical world, and not online. The article (subscribers only) notes:

"Worried that shadowy gangs of Russian hackers are breaking into computer networks, stealing your financial secrets? Don't lose too much sleep over it. * * *

Despite a series of alarming reports in recent months ... most bank-related crimes remain stubbornly low-tech."

The article goes on to cite a study by consulting firm Javelin Strategy & Research pointing out just how few crimes are attributable to online activity. "Computer viruses or hackers accounted for only 2.2% of incidents," says the Wall Street Journal, citing the study.

This is an important point for small business owners to remember when it comes to online banking. Small business owners tend to cite security as a reason for not adopting online banking. A few weeks ago I wrote about this very issue, asking: "Are Small Businesses Avoiding or Embracing Online Banking?"

I'm surprised that banks don't do more to highlight the relative security of online banking. Simply saying that online banking is secure is not enough. Using the kinds of statistics quoted here would make a much more powerful point.