WKFS Survey: Lenders Aren't Sending Crucial Docs Securely

Only one-third of financial institutions are using the Internet to send confidential documents to customers, partners and service providers using a secure electronic document delivery solution, according to a recent Wolters Kluwer Financial Services survey. Nearly 62% of the 347 banks, credit unions and mortgage companies responding to the survey said they are using the Internet to transmit confidential documents such as loan disclosures and documents. Of those institutions, however, only one-third say they are using a secure electronic delivery solution. Approximately another third are using traditional e-mail, which does not encrypt customer data. The remainder use less secure document delivery methods such as password protected e-mail and websites, regular or overnight mail, or are not sure of the method they use. According to Jason Marx, vice president and general manager, Mortgage, Wolters Kluwer Financial Services, the recent growth of identity theft and other forms of electronic fraud make it harder to send documents or information safely via traditional mail, e-mail and websites. Even with password protection, he says, fraudsters can hack into these systems to access customer information.