Mohammed AlZomai, from QUT's Information Security Institute, said one in five online transactions was vulnerable to obvious attacks despite added security methods such as SMS passwords being adopted.
Mr AlZomai said the study had found that the security threat had more to do with the usability of the SMS system and human error, rather than any technical security problem.
"In response to the growing threat to online banking security, most banks have implemented special methods for authenticating a transaction," he said.
"A typical method is sending a one-time-password via SMS to the customer's mobile phone for each transaction.
"This means the customer must manually copy the password from their phone in order to confirm the online transaction."
But Mr AlZomai said customers were failing to notice when the bank account number in the SMS message was not the same as the intended account number.
He said if this occurred it was a clear sign hackers had infiltrated the system.
As part of the study, QUT developed a simulated online bank and asked participants to play the role of customers and undertake a number of financial transactions using an SMS authorisation code.
Mr AlZomai said he then simulated two types of attacks - an obvious attack which was where five or more digits in the account number were altered, and a stealthy attack which was where only one digit was changed.
"It is worrisome that obvious attacks were successful in 21 per cent of cases," he said.
"And when transactions faced a stealthy attack, 61 per cent of attacks were successful."
He said this study showed that a significant number of users were unable to identify the attack.
"This is a strong indication that the SMS transaction authorisation method is vulnerable," he said.
"According to our study only 79 per cent of users would be able to avoid realistic attacks, which represents an inadequate level of security for online banking."
Mr AlZomai said while this study highlighted the importance for customers to be vigilant when they were banking online, banks also had a responsibility to their customers.
"We hope this research will allow online banks and other online service providers to be better prepared for these emerging risks."
Sandra Hutchinson | EurekAlert!
Microtechnology industry is hiring – positive developments of past years continue
09.04.2018 | IVAM Fachverband für Mikrotechnik
RWI/ISL-Container Throughput Index with minor decline on a high overall level
20.03.2018 | RWI – Leibniz-Institut für Wirtschaftsforschung
Engineers at the University of Tokyo continually pioneer new ways to improve battery technology. Professor Atsuo Yamada and his team recently developed a...
With a quantum coprocessor in the cloud, physicists from Innsbruck, Austria, open the door to the simulation of previously unsolvable problems in chemistry, materials research or high-energy physics. The research groups led by Rainer Blatt and Peter Zoller report in the journal Nature how they simulated particle physics phenomena on 20 quantum bits and how the quantum simulator self-verified the result for the first time.
Many scientists are currently working on investigating how quantum advantage can be exploited on hardware already available today. Three years ago, physicists...
'Quantum technologies' utilise the unique phenomena of quantum superposition and entanglement to encode and process information, with potentially profound benefits to a wide range of information technologies from communications to sensing and computing.
However a major challenge in developing these technologies is that the quantum phenomena are very fragile, and only a handful of physical systems have been...
Working group led by physicist Professor Ulrich Nowak at the University of Konstanz, in collaboration with a team of physicists from Johannes Gutenberg University Mainz, demonstrates how skyrmions can be used for the computer concepts of the future
When it comes to performing a calculation destined to arrive at an exact result, humans are hopelessly inferior to the computer. In other areas, humans are...
Scientists develop a molecular recording tool that enables in vivo lineage tracing of embryonic cells
The beginning of new life starts with a fascinating process: A single cell gives rise to progenitor cells that eventually differentiate into the three germ...
29.04.2019 | Event News
17.04.2019 | Event News
15.04.2019 | Event News
20.05.2019 | Materials Sciences
20.05.2019 | Life Sciences
20.05.2019 | Power and Electrical Engineering