Guidance on Authentication in Internet Banking Environment

STRONG AuthenticationNational Credit Union Administration (NCUA)Information Security

Federally Insured Credit Unions are increasingly offering a variety of Internet banking services ranging from simple inquiry to complex e-Commerce activities for their members. In parallel, the number of members using transactional sites grew significantly. As e-Commerce services increase in volume and complexity, criminals are using more sophisticated methods for account fraud and identity theft. You should become more diligent to safeguard member information, to prevent money laundering and terrorist financing, to reduce fraud, and to inhibit identity theft. One of the effective security measures to mitigate these risks is to implement an effective and reliable authentication system.

Authentication is the process of verifying a member’s identity using a variety of methodologies and technologies before the member gains access to the system. It is a way to ensure members are who they say they are. A single-factor authentication such as user name and password used as a security control mechanism may not be adequate for high-risk transactions involving access to member information or fund transfers.

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