Update: 2nd March 2007: The bank confirmed they want to use Flash to defeat key loggers.
- Key loggers are a “feature” of MS Windows, mostly. Well conceived operating systems do not allow the installation of such malware. The choice of the operating system is up to the user. He is free to upgrade to a more secure one. If he does not, that is his problem not the bank’s.
- On the Windows platform, key loggers should be intercepted by the anti-virus program. If it does not, that is the user’s problem not the bank’s.
- While the Flash applet may help defeat the key loggers on the Windows platform for the specific use of the online banking service, it does not solve the general issue of the key logging malware on the Windows platform in general. In fact, this would give the false impression to the clueless user that he is protected against key loggers, while in fact he is only protected for a specific application and not when using his credit card on Amazon or elsewhere.
The only conclusion one can draw from the whole thing is that the bank wants to be legally covered in case a customer complains. Security has nothing to do with it. The bank could easily disclaim liability in case the user does not implement the right security tools on his computer. It could, for example, disclaim liability in case the browser allows the installation of malware, which is typical of Internet Explorer.
The original post is after the break

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