Out-of-Band Authentication EvolvesAuthentify's Peter Tapling on Mobile and Non-Banking Solutions
Since the summer of 2009, U.S. banking institutions and their commercial customers have been plagued by incidents of ACH and wire fraud that have led to millions of dollars in losses.
Upon issuing its authentication guidance supplement in mid-2011, the Federal Financial Institutions Examination Council called upon institutions to deploy new layered security controls to better detect and prevent online banking fraud. Among the recommendations: Out-of-band authentication for transactions. In other words, a transaction initiated via one means (the internet) must be verified via a separate channel (a telephone) before the transaction can be completed.
In the past, out-of-band authentication was criticized as "difficult" - customers didn't want to receive a separate call about their transactions, critics said.
But Peter Tapling, President and CEO of Authentify Inc., a provider of out-of-band solutions, says that's a myth. "People appreciate being contacted when particular transactions look risky," Tapling says. "Out-of-band authentication provides the opportunity to do that in real-time, at very low cost to the institutions."
In an exclusive video interview recorded at RSA Conference 2012, Tapling discusses:
- The value of out-of-band authentication;
- New mobile applications;
- How OOB is being used outside of banking.
Peter Tapling co-founded Authentify in 1999 and has held the position of President and CEO ever since.