NEW CYBER SECURITY STUDY SHOWS CONSUMERS ARE OVERCONFIDENT ABOUT IDENTIFYING ONLINE SCAMS

Media Contacts:

Julie Han, National Cyber Security Alliance
415-975-3327
julie.han@porternovelli.com

Betty Riess, Bank of America
415.622.6397
betty.riess@bankofamerica.com

While 87 percent of consumers polled feel confident they can recognize a fake e-mail or Web site, 61 percent could not identify a legitimate e-mail

WASHINGTON – MAY 31, 2006 – A new cyber security study released today highlights the difference between perception and reality of consumers’ awareness of online scams and their actual online behavior. While 87 percent of consumers polled said they were confident they could recognize fraudulent e-mails, 61 percent failed to identify a legitimate e-mail. Most respondents categorized all e-mails in the study as fake, even though one of them was legitimate. The Online Fraud Report has been sponsored by the National Cyber Security Alliance (NCSA), a central clearinghouse for cyber security awareness and education for home users, small businesses and the education community, and Bank of America.

In addition to researching behavior about e-mails, the study also presented images of sample Web sites and asked consumers whether they could identify whether a site was secure or not -- 67 percent could not identify a secure Web site. Six out of 10 respondents relied on symbols, such as “padlocks” to determine whether a site was secure, while four in 10 consumers felt there was no real way to determine if a site was secure.

“We are making progress, as consumers are more aware than ever of a range of online threats. However, it is clear that the sense of confidence many feel in their ability to identify online scams is misplaced and overstated,” said Ron Teixeira, executive director of the National Cyber Security Alliance. “As people continue to conduct more of their activities and transactions online, fraudsters will continue to present sophisticated scams. This study reinforces the necessity for consumers to educate themselves regularly about safe online practices in order to stay ahead of the next threat.”

In the past year, Bank of America led the industry by launching SiteKey™, a two-way authentication system that helps customers confirm they are at the real Bank of America Web site and avoid phishing scams.

“Online security is a shared responsibility among legitimate businesses and consumers,” said Sanjay Gupta, e-Commerce executive at Bank of America. “We take that obligation very seriously and work hard to provide the latest information and security. We launched the SiteKey service, we’re rolling out 18 more e-alerts to help consumers monitor account activity, we launched a free toolbar to prevent pop-up ads and we posted new security-related education material online.

Key highlights of the Online Fraud Report include:

• Roughly eight in 10 Americans who use the Internet conduct online financial transactions such as online banking, stock transactions or filing taxes.
• Two-thirds of consumers who conduct online financial transactions are extremely or very concerned about giving their personal or financial information to a fake Web site and having hackers steal financial information from their computer.
• 74 percent of Americans don’t believe using only an ID and password to log-in is extremely or very safe. More than 68 percent of respondents are extremely or very willing to try additional layers of login security, such as answering personal questions about themselves to confirm their identity.
• More than four out of five people polled believe that the responsibility of limiting and preventing online fraud is equally shared by the legitimate Web site, themselves and Internet service providers.
• More than 80 percent of consumers understand that not opening unsolicited e-mails, using the proper security software and keeping security software updated are all ways to prevent Internet fraud.  However, according to the 2005 America Online/NCSA Online Safety Study, 81 percent of home PCs lack at least one of the three critical protections — updated computer virus software, spyware protection, and a secure firewall.

Here are steps consumers can take to prevent fraud:

• Use safe computer behavior. Install protection such as firewalls, anti-virus software and anti-spyware software. Keep the protection and browsers updated. Don’t download materials from unknown senders. Use unique passwords that are hard to guess and change them often.
• Confirm the validity of all requests for sensitive personal, financial or account information, particularly if they are made with an urgent or threatening tone or are unsolicited. Consumers who get the request through e-mail should open a new browser window and type in the referenced Web address rather than clicking on links provided within the e-mail.
• Monitor accounts, credit reports and credit scores. Notify banks and credit agencies immediately of any unauthorized transactions.
• Take advantage of free bank services, such as direct deposit. Stop receiving paper statements through the mail when they are available online.
• Do not share your IDs, passcodes or ATM passwords with anyone.

To view the full guide or for more information and additional security tips, visit National Cyber Security Alliance’s Web site at http://staysafeonline.org/news/onlinefraudreportfinal.pdf or www.bankofamerica.com/security.

Research Methodology

The survey was conducted online among 1,055 adults across the United States. The margin of error is plus or minus 3 percentage points.

About the National Cyber Security Alliance

A not-for-profit 501(c)(3) organization, the National Cyber Security Alliance (NCSA) is a central clearinghouse for cyber security awareness and education for home users, small businesses, and the education community. A public-private partnership, NCSA sponsors include the Department of Homeland Security, Federal Trade Commission, and many private-sector corporations and organizations. For more information, and to review the top 8 cyber security practices, visit www.staysafeonline.org.

About Bank of America Online Banking
Bank of America is a leading provider of online financial services, and its online site, www.bankofamerica.com, has received widespread recognition. Bank of America has the most online bankers in the world, according to Financial Insights. The site is among the top 50 of all U.S.-based Internet properties in terms of unique visitors monthly, and No. 1 among business and finance sites, according to comScore Media Metrix. Bank of America ranked No.1 in Javelin Strategy & Research’s Identity Fraud Safety Scorecard in 2004 and 2005. BusinessWeek called the SiteKey™ security service one of the best products of 2005. Bank of America won the Webby Award and Webby People’s Choice Award in 2006 in the online banking/bill pay category. Global Finance magazine named bankofamerica.com the best consumer online banking site and the best information security initiatives in North America. In 2006, Nielsen/NetRatings said Bank of America is the top online full-service bank destination in terms of audience, page views and active reach on the site. In 2005, the site was ranked among the Forbes Best of the Web.