Online Banking Moving Beyond the Password
Here's an update from MSNBC on some future changes to online banking:
By the end of next year, it may take more than just an ID number and password for bank customers to access their online accounts. In the face of increasing online banking fraud, federal agencies announced they are requiring all financial institutions in the country to beef up their Internet security measures by the end of 2006. That means customers may soon have to navigate through more security screens.
A couple banks are already in the lead in this area:
Bank of America is the first out of the gate with its new SiteKey picture-recognition service, which it will require all customers to use starting in early 2006. Customers choose a picture when they first visit and are presented their choices in subsequent visits to assure them the site is not fake.
This month, Washington Mutual announced that it now uses a version of computer fingerprinting that analyzes every online login and transaction, scores the potential risk of identity theft based on a broad range of criteria, and invokes additional authentication methods if needed.
Here's a word of caution (and some reassurance) if you bank with a smaller bank:
Because big banks are bulking up their online security measures, phishers and scammers are reportedly moving down the chain to medium-sized and small banks, but Litan said many of them are well prepared to meet the threats.
Finally, someone is doing something about identity theft and the security of financial information. For more on this topic, see these posts:
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