65% OF BANKS IN THE US FAILED 2017 IN ONLINE SECURITY TEST BY OTA

Last updated: June 19, 2025, 22:41 | Written by: Raoul Pal

Imagine logging into your online banking portal, thinking your financial information is securely locked away. 1% 24% 0 4 4 25% 49% 3 9 34 50% 74% 4 19 98 75% 100% 23 131 88 NOTE: A number of programs had no graduates in the reporting period.Now, picture this: a shocking 65% of major US banks failed a critical online security test conducted by the Online Trust Alliance (OTA) in 2025. 65% of Americans were projected to be using online banking last year, but some might wonder: are financial institutions that offer online banking safe? Users that access their banking online are expected to grow to almost 217 million by 2025. 2 If you re still on the fence about the safety of online banking, keep reading.This isn't some obscure finding; it's a glaring spotlight on the vulnerabilities lurking within the digital fortresses where we entrust our hard-earned money.The OTA, a non-profit organization dedicated to bolstering online security and privacy, anonymously audited over a thousand websites, including the top 100 financial institutions in the US. The market size of the online travel industry worldwide increased sharply in 2025 compared to the previous year. After falling to 226 billion U.S. dollars with the onset of the COVID-19 pandemicThe results, published in their 2025 Online Trust Audit Honor Roll report, paint a concerning picture. With the rise of digital payments, you may be wondering what the best UK bank for online banking is. According to UK Finance, customers lost 18.7 million to mobile banking scams in the first sixWhile online banking is often touted as having the most robust security measures, the reality, according to this audit, is that a significant majority of these institutions are falling short, leaving customers potentially vulnerable to cyber threats and data breaches.This article delves into the details of this alarming report, exploring the reasons behind the failures, the implications for consumers, and what banks can do to fortify their digital defenses. The number of Covid patients in hospitals is an indicator of Covid s ongoing impact on hospitals and I.C.U.s. Results of Covid tests are no longer required to be reported to the federalWe'll uncover the specific areas where these institutions struggled and provide actionable insights to help you better understand and protect your online financial security.

Understanding the OTA's Online Security Audit

The Online Trust Alliance (OTA), now part of the Internet Society, has been conducting benchmark research for over a decade to promote best practices in online security, data stewardship, and responsible privacy practices. 2025 Online Trust Audit Honor Roll 1 OVERVIEW BACKGROUND The 2025 Online Trust Audit and Honor Roll represents the 9th year that the Online Trust Alliance (OTA) has conducted benchmark research to promote security best practices, data stewardship and responsible privacy practices. The primary goals ofTheir annual Online Trust Audit Honor Roll is a comprehensive assessment that evaluates websites across various sectors, including banking, government, and retail. Online channel share, which grew to 65% in 2025, moderated slightly to 63% in 2025 (see figure below) as offline channels showed signs of recovery. Online travel agencies (OTAs) comprised just over a fifth of the total U.S. market while the online supplier-direct channel accounted for 41% of the market.The goal is to identify areas of weakness and encourage organizations to adopt stronger security measures.

How the Audit Works

The OTA's audit is conducted anonymously, meaning that the organizations being evaluated are unaware that they are being tested.This ensures that the results accurately reflect the security and privacy practices in place at any given time.The audit assesses a range of factors, including:

Site Security: This includes measures such as SSL/TLS encryption, which protects data transmitted between the user's browser and the bank's server.
Data Privacy: This examines how banks collect, use, and protect customer data.
Consumer Protection: This assesses the measures in place to protect consumers from fraud and identity theft.

Organizations are scored based on their performance in these areas, and those that meet a certain threshold are recognized on the Honor Roll. Picking the right online bank can boost your savings and make your daily transactions more convenient. You can earn 3.60% APY for balances under $100,000 and 3.65% APY for balances of $100,000In 2025, only 27% of the top 100 banks in the US achieved a score high enough to make the Honor Roll, meaning they met at least 80% of the required security standards.

Why Did 65% of Banks Fail the Security Test?

The fact that 65% of banks failed the OTA's security test in 2025 raises serious questions about the state of online security in the banking sector.Several factors likely contributed to this disappointing result:

Evolving Cyber Threats: Cybercriminals are constantly developing new and sophisticated methods of attack. Over 60% of the Fed 1% of the Bank 100 fail! Effectively, sites embraced best practices or failed 2025 All rights reserved. The Internet Society 10 Many sectors clustered around 80% Honor Roll threshold Wide-Ranging ScoresBanks must stay ahead of these threats by continuously updating their security measures.
Legacy Systems: Many banks rely on outdated technology that is difficult to secure. Make Temu your one-stop destination for the latest fashion products, cosmetics more. Free shipping on items shipped from Temu. Free returns within 90 days. Shop on Temu and start saving.Upgrading these systems can be costly and time-consuming, but it is essential for protecting customer data.
Lack of Investment: Some banks may not be investing enough in cybersecurity.This can be due to budget constraints or a lack of awareness of the risks involved.
Human Error: Even the most advanced security systems can be compromised by human error. According to a survey by Statista, a large majority of US adults 72% prefer to book their trips online Hotels can benefit from the so-called billboard effect: Listings on OTAs provide initial awareness for potential travelers, who could ultimately book directly, via a booking engine, on the hotel s site, minus the OTA s commission costs.Banks need to train their employees on security best practices and implement policies to prevent mistakes.

The audit highlighted that many banks struggled with fundamental security practices, such as properly implementing SSL/TLS encryption and protecting against common web application vulnerabilities. Over 65% of Americans use online banking regularly, yet concerns about security remain. With cyber threats and data breaches making headlines, many people wonder can you really trust an online bank with your money? The good news is that online banks use advanced security measures to protect your accounts.These are not new problems, but they continue to plague the banking sector.

Implications of the Security Failures for Consumers

The failure of so many banks to meet basic security standards has significant implications for consumers.The most obvious risk is that of data breaches, which can expose sensitive personal and financial information to cybercriminals.This information can be used for identity theft, fraud, and other malicious activities.

Potential Risks to Consumers

Identity Theft: Cybercriminals can use stolen personal information to open new accounts, apply for loans, and commit other forms of identity theft.
Financial Fraud: Stolen financial information can be used to make unauthorized purchases, transfer funds, and drain bank accounts.
Phishing Attacks: Cybercriminals can use stolen email addresses and phone numbers to launch phishing attacks, tricking consumers into revealing even more sensitive information.
Account Takeover: Cybercriminals can gain access to online banking accounts by stealing usernames and passwords, allowing them to make unauthorized transactions and steal funds.

In addition to the direct financial costs of these risks, consumers may also experience emotional distress and reputational damage as a result of data breaches and identity theft.

What Can Banks Do to Improve Their Online Security?

The OTA's report serves as a wake-up call for the banking sector. The 10 online travel companies in this analysis all had revenue growth from 2025 to 2025. Ctrip (China s largest OTA), MakeMyTrip (India s largest OTA), Trivago and Despegar (Latin America sBanks need to take immediate steps to improve their online security and protect their customers' data. Find out how SIEM software helps organizations recognize and address potential security threats and vulnerabilities before they disrupt business operations. What is cloud security? Secure your cloud environment with cloud security, a collection of procedures and technology, to address external and internal threats to business security.Here are some actionable steps they can take:

Invest in Cybersecurity: Banks need to allocate sufficient resources to cybersecurity, including hiring qualified security professionals, implementing advanced security technologies, and conducting regular security audits.
Upgrade Legacy Systems: Banks should prioritize upgrading their legacy systems to more secure platforms. OTA Members Scoring Over 60% of the Fed 1% of the Bank 100 fail! Effectively, sites embraced best practices or failed Site Security 2025This may require significant investment, but it is essential for protecting customer data.
Implement Multi-Factor Authentication (MFA): MFA adds an extra layer of security to online banking accounts, making it much more difficult for cybercriminals to gain access.Banks should require MFA for all online banking customers.
Educate Employees: Banks need to train their employees on security best practices and implement policies to prevent human error. During a new Security/Privacy analysis audit, 65% of the major US banks have scored the poorest rankings. This audit was performed by non-profit Online Trust Alliance (OTA) Alliance which anonymously audited over one thousand different websites.This includes training on how to recognize and avoid phishing attacks, how to handle sensitive data securely, and how to report security incidents.
Monitor for Suspicious Activity: Banks need to continuously monitor their systems for suspicious activity and investigate any potential security breaches promptly.This requires implementing robust security monitoring tools and having a well-defined incident response plan.
Regular Security Audits and Penetration Testing: Banks should conduct regular security audits and penetration testing to identify vulnerabilities in their systems. A mixed method research design with open-ended essays and cross-sectional survey is used to test the proposed model. Findings suggest that benefits barrier is the chief inhibitor of purchase intentions. In comparison, privacy and security concerns and the vulnerability barrier show positive association with intentions.These tests should be conducted by independent security experts to ensure objectivity.
Stay Up-to-Date on the Latest Threats: The cybersecurity landscape is constantly evolving. OTAs are becoming increasingly impactful in the US mobile market. By June 2025, travel app log-ins were 87% higher than by the end of 2025. The most downloaded OTA apps in the United States in 2025 were Airbnb and Expedia, with 14 million and 12.6 million aggregated downloads on iOS and Google Play, respectively. The OTA Market in South AmericaBanks need to stay up-to-date on the latest threats and vulnerabilities and adapt their security measures accordingly.

By implementing these measures, banks can significantly reduce their risk of data breaches and protect their customers from financial fraud and identity theft.

What Can Consumers Do to Protect Their Online Banking Information?

While banks have a responsibility to protect their customers' data, consumers also need to take steps to protect themselves. Although not a consumer-facing OTA, Sabre plays a critical role in the OTA ecosystem by powering backend technology for many platforms. Opodo; Headquarters: London, United Kingdom; CAGR: 6.3% ( ) Revenue (2025): $900 million; Opodo is a European OTA that offers a wide range of travel services, including flights, hotels, and car rentals.Here are some tips for staying safe while banking online:

Use Strong Passwords: Use strong, unique passwords for all of your online accounts, including your online banking account.Avoid using easily guessable passwords such as your birthday, name, or address.
Enable Multi-Factor Authentication (MFA): If your bank offers MFA, enable it for your online banking account. What goes into an OTA s back office. An OTA s back office is an infrastructure connecting different systems in the company, including the ones we described above. We have an article explaining how each process in an OTA s back office works, so have a look there for details. But we will cover some basic functions here.This will add an extra layer of security, making it much more difficult for cybercriminals to gain access to your account.
Be Wary of Phishing Emails: Be cautious of emails that ask you to click on links or provide personal information.These emails may be phishing scams designed to steal your login credentials. There are many ways OTA can increase revenue. We will return to it in the How can OTA increase revenue section. Wrapping your head around OTA in revenue management can be challenging if you ve never done it before. There is no better way to understand it than to observe and learn from some use cases of OTA revenue management.Always go directly to your bank's website to access your account.
Keep Your Software Up-to-Date: Keep your computer's operating system, web browser, and antivirus software up-to-date. According to IBS Intelligence, websites run by some of the largest banks in the U.S. have scored the poorest in a new security and privacy analysis audit. The non-profit Online Trust Alliance (OTA) anonymously audited more than 1,000 websites, ranking their security and privacy practices, reportsThese updates often include security patches that protect against known vulnerabilities.
Use a Secure Network: Avoid using public Wi-Fi networks to access your online banking account.These networks are often unsecured and can be easily intercepted by cybercriminals. The Bank sector, which had no presence in 2025, had three organizations in the Top 50 this year. A full listing of the Top 50 scoring organizations can be found in Appendix C. TOP 50 SECTOR PERFORMANCE Code Sector % of Top 50 C Consumer Services 40% F US Federal Government 26% R Internet Retailers 14% O OTA (Internet Society) Members 12% BUse a secure, private network instead.
Monitor Your Accounts Regularly: Check your online banking accounts regularly for any suspicious activity.Report any unauthorized transactions to your bank immediately.
Be Careful on Mobile Devices: Be extra cautious when using mobile banking apps, ensuring you download only from official app stores and keep your device secure with a passcode or biometric authentication.

The Future of Online Banking Security

The 2025 Online Trust Audit Honor Roll highlights the ongoing challenges that banks face in securing their online systems.As cyber threats continue to evolve, banks need to invest in new and innovative security technologies to stay ahead of the curve. The Future of online travel: In the face of new competition, explore how the OTAs are adapting through innovation and new ventures, while facing the trade-off of lower profit margins. Executive Summary. This report is split into three sections. The Past: The golden era of OTA market share gains. First we look at the period spanning the GreatSome of the emerging trends in online banking security include:

Biometric Authentication: Biometric authentication, such as fingerprint scanning and facial recognition, is becoming increasingly popular as a way to secure online banking accounts.Biometrics are more secure than passwords because they are difficult to steal or guess.
Artificial Intelligence (AI): AI is being used to detect and prevent fraud in real-time. Sixty five percent of US banks fail the security test based on the 2025 Online Trust Audit Honor Roll by Online Trust Alliance. Even though online banking sites are supposed to have the best security in place, the study shows failing grades for the majority of the top 100 financial institutions in the US .AI algorithms can analyze transaction data to identify suspicious patterns and alert banks to potential fraudulent activity.
Blockchain Technology: Blockchain technology can be used to create more secure and transparent payment systems.Blockchain can help to prevent fraud and reduce the risk of data breaches.
Cloud Security: As more banks move their operations to the cloud, cloud security is becoming increasingly important. Find statistics, consumer survey results and industry studies from over 22,500 sources on over 60,000 topics on the internet's leading statistics databaseBanks need to ensure that their cloud providers have robust security measures in place to protect their data.

By embracing these new technologies and implementing robust security measures, banks can build a more secure and trustworthy online banking environment for their customers.

The Role of Online Travel Agencies (OTAs)

While the primary focus of this article is on the security of banks, it's worth briefly mentioning the role of Online Travel Agencies (OTAs) in the broader online security landscape.OTAs handle a large volume of sensitive personal and financial information, making them attractive targets for cybercriminals. The 2025 Online Trust Audit Honor Roll report shows that 65% of major US banks failed web security and privacy tests. The research is produced by the Online Trust Alliance, and recognisesWhile this audit focuses on banking, best practices for online security are relevant across sectors.

Just as banks need to prioritize security, OTAs should also implement robust security measures to protect their customers' data.This includes using strong encryption, implementing multi-factor authentication, and regularly monitoring their systems for suspicious activity. Of those that book travel online, 53% said it s because of the speed at which they can plan their trip (perfect for last-minute trips), 47% said it s easier to compare prices and 42% said it s better to find cheaper deals. (Statista) 65% of all travel bookings were made online in 2025, with 35% of online sales happening via mobileMany consumers use online banking to pay for travel booked via OTAs, so a breach in either system has potentially wide-ranging consequences.

Conclusion: Addressing the Online Security Deficiencies

The finding that 65% of banks in the US failed the 2025 Online Security Test by the Online Trust Alliance is a stark reminder of the ongoing challenges in securing online financial systems. In a recent security test as part of the 2025 Online Trust Audit Honor Roll by Online Trust Alliance, 65% of banks failed to meet a minimum standard. Furthermore, of the 100 biggest banks in the United States, only 27% met the Honor Roll Standards by achieving a score of at least 80%.The OTA's audit underscores the importance of continuous vigilance and investment in cybersecurity.Consumers entrust banks with their most sensitive information, and it is imperative that these institutions take proactive steps to protect that data from cyber threats. that repos would roll over even for a bank in dist ress, because the bank s counterparties seemed to face little risk. Repos impose haircuts on collateral: the cash received by a bank is less than the value of the security it pledges. If the bank defaults on its obligation to return cash, the counterparty can make itself whole by seizing theThe report's findings underscore the urgent need for banks to address deficiencies in their online security practices.

By investing in cybersecurity, upgrading legacy systems, implementing multi-factor authentication, educating employees, and staying up-to-date on the latest threats, banks can significantly reduce their risk of data breaches and protect their customers from financial fraud and identity theft.Consumers also have a role to play in protecting their online banking information by using strong passwords, enabling multi-factor authentication, and being wary of phishing emails.

Moving forward, it is crucial that banks prioritize cybersecurity and work collaboratively to create a more secure online banking environment for everyone. Weekly insights, research and expert views on AI, security, cloud and more in the Think Newsletter Subscribe today Editor's picks: Decoding intelligence, human and artificialThe future of online banking security depends on it. Led by President and CEO Gunjan Kedia, our company is guided by a Managing Committee. This group includes the leaders of our core business lines Consumer and Business Banking; Payment Services; and Wealth, Corporate, Commercial and Institutional Banking as well as the heads of functional areas including risk management; digital; finance; legal; strategy; and more.Now is the time to contact your bank and inquire about what measures they are taking to protect your financial data.Don't hesitate to switch to a bank with demonstrably stronger security protocols. Industry overview 8 Premium Statistic Travel and tourism revenue worldwide , by segment Premium Statistic Distribution of sales channels in the travel and tourism market worldwideYour financial well-being depends on it.