HSBC is a large multinational bank headquartered in London. It faces security issues with electronic banking like payment failures, hacker attacks, and fraud. To address these problems, HSBC uses two-factor authentication, encrypts customer data during transfers, and notifies customers after transactions through SMS. It was also one of the first banks in India to implement two-stage verification for online transactions by sending customers an additional passcode to complete purchases. HSBC works to secure transactions while providing convenient online banking services to its customers.

1. Securing Information : The
HSBC Way
VY10
SHANLA ANN SHIBU
SIJI MARIA SEBASTIAN

2. CASE STUDY

3. INTRODUCTION
 HSBC Holding plc is a British multinational banking and financial services holding
company
 Founder – Sir Thomas Sutherland
 Headquarters – 8 Canada Square, London, United Kingdom
 It is the 7th largest bank in the world.
 HSBC is organized within four business groups : commercial banking
,global banking & markets, retail banking &wealth management and global
private banking.
 Global product lines are; HSBC Direct, HSBC net, HSBC Advance, HSBC Premier
and HSBC Jade

4. ISSUES AND PROBLEM IDENTIFIED
 Payment – processing failures
 Specific software only on certain phones e.g. Iphone, Samsung etc.
 Hackers
 Cyber attacks
 Illegal transactions
 Frauds like;
- phishing e-mails
- Trojan

5. CASE ANALYSIS
 Electronic banking services are convenient from the customer’s point of view, they
pose transactional and operational challenges for the bank.
 Attackers can also can utilize user information from various sources, join the dots
to get a complete picture of the victim’s profile, and pose as the user to perform
illegal transactions on their behalf. This is called social engineering.
 Cyber attacks and information security threats are of increasing in India.
 All these risks make it important for banks to have effective policies, procedures
and controls in place to tackle these challenges

6. The need for securing electronic banking
at HSBC
 Electronic banking services are convenient from the customer’s point of view, they
pose transactional challenges for the bank. Hackers are a major threat. They can
break into confidential information and illegal transfer money.

7. HSBC – SECURITY MEASURES
 Two-factor authentication using security devices or smart card to generate one-
time passwords.
 Industry –standard security mechanisms to protect the infrastructure.
 Robust authentication process.
 Protection against key - logging and denial - of – service attacks
 Encrypted session between the customer and the bank
 Protection of sensitive information in transit and storage to ensure confidentiality
of customer data

8. Two - stage verification process
in HSBC
 HSBC was one of the first bank in India to introduce the two stage authentication
system to boost the security of online transaction. In addition to authenticating
the user with the usual user ID and password, an additional passcode is required.
 This passcode is sent to complete an online transaction.

9. Steps taken by HSBC to protect its
electronic banking transactions
 HSBC sends SMS notification to users on complete of transaction.
 HSBC’s policy of not sending any confidential information to customer by e-mail
minimizes the chances of phishing.
 The bank’s secure portal uses the ‘https’ protocol to establish a secured session.

10. ALTERNATIVE SOLUTIONS
 Install anti – virus software
 Update web browser
 Do not share private information online
 Checking account statements
 Always log - out after using online banking.
 Check your account regularly
 Change your password on a regular basis

11. CONCLUSION
 HSBC provide an understanding of the local needs of its customers while having
the coverage to ensure it can provide solutions to problems wherever in the world
they occur

12. THANK YOU