Reducing Online Banking Fraud with Stronger Authentication Methods

STRONG Authentication

Account fraud is frequently the result of single-factor (e.g.,ID/password) authentication exploitation. As a result, the FFIEC is now urging financial institutions to deploy multi-factor authentication and assess the adequacy of their authentication techniques in light of new or changing risks such as phishing, pharming, malware, and the evolving sophistication of compromise techniques. The guidelines are definitely a step in the right direction. However, guidelines are just guidelines and a bank's goal should be secure online banking. Consider this: the appendix to the FFIEC guidelines lists one-time password scratch cards as a means of stronger authentication. However, phishers have already successfully attacked a bank that uses that system, forcing a 12 hour shutdown of their online bank.

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