Tuesday, November 23, 2004


Safe online banking with two factor authentication

Cool idea: authenticating large bank transfers via SMS.

ASB and Bank Direct's internet banking customers will need to have their cellphone close to hand if they want to use the net to transfer more than $2500 into another account from December.
ASB technology and operations group general manager Clayton Wakefield announced the banks would be the first in New Zealand to implement a "two factor authentication" system to shut out online fraudsters, unveiling details of the service on Friday.

After logging on to internet banking, customers who want to remit more than $2500 into a third party account will receive an eight-digit text message to their cellphone, which they will need to enter online within three minutes to complete the transaction.

Italy is still far behind but things are improving:

  • CartaSi (credit cards) sends SMS alerts in seconds when your credit card is used.

  • BMP (banking) is increasing its security by requiring you to enter a code from a pre-generated list in addition to the user name and password for any online transaction.

Via [Schneier on Security]

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