Industry Reacts to New Generation of Hackers
Online security breaches remain a persistent problem, and two online brokers are feeling the pain from hackers who used keystroke log-in and phishing programs to steal customer IDs and passwords. E-Trade Financial Corp. disclosed in October that its fraud losses totaled $18 million in the third quarter. Competitor TD Ameritrade Holding Corp. said it spent $4 million to reimburse customers for losses they suffered from online fraud during the quarter.
There has been no letup in measures to counteract cybercrimes. Industrywide spending on online authentication and fraud detection will rise to $88 million in 2010 from $58 million in 2007 and $22 million in 2006, according to Boston-based research firm Aite Group.
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