Consumers loving online banks despite phishing threats

Phishing may be the internet criminal's scam method of choice but it's not putting consumers off online banking, new research has revealed.

Despite the rise in phishing and other financial security such as those that recently affected MorganStanley and Cahoot, consumers have more confidence in their online banking providers than three years ago.

According to research from market information company TNS, 30 per cent of UK adults are more confident about online banking security than they were in 2002. Youngsters are particularly optimistic about the banks - with 41 per cent more confident than before.

Although a small percentage of UK adults queried by TNS did plan to decrease their online banking, 11 per cent said they wouldn't change and another 22 per cent said they'd start or increase their usage.

Catherine Coulson, director at TNS, said: "At the moment, the benefits are outweighing the negatives [for consumers]. People have already made a positive decision to bank online and they have confidence in the providers... They also have the self-confidence not to be taken by one of these scams," she added.

However, the research shows there is still a hard core of adults - 24 per cent - who have no plans to use internet banking at all.

While the banks might currently still have the good favour of consumers, if they stop indemnifying them - paying back money lost to fraudsters - it could all change, Coulson said.