Online Security Device — Hidden Truth

The latest innovation from HSBC India is bringing in of some sort of Online Security Device (handheld) which generates a random six digit code each time you logon to online@HSBC. But I really wonder how effective is this device on the following arguments?

  1. Compared to ICICI Bank or UTI Bank (powered by Finnacle) which has two passwords like login and transaction passwords, I think this is not that much secure.
  2. The device has a battery life of one year and in case the battery runs out, you can not recharge it. You need to order a replacement device which costs about 350 INR from HSBC Call Center. One more way that HSBC can make money from the customer. I think the manufacturing cost of the device along with other costs should work out to a retail price of just 50 INR and hence the entire 300 INR should be a huge profit for HSBC India considering the amount of credit card customers they have. The call center too is not able to justify the battery life time.
  3. If you lose the device you can not login to HSBC Online till you get the device.
  4. One of my friend was fighting for more than one and half month till the device was despatched. His online@HSBC got deactivated till a device logon was furnished but the device did not reach him.
  5. With the amount of laxity of backoffice staff and inertia, you need to wait for one month till a statement or report comes from HSBC India. And more further HSBC India has too many bad people handing the staff. I think instead of fleecing the customers like this, they can try cleaning up their staff first. Check out this HSBC Employee fraud in Bangalore.