An online banking security standard will be launched before the end of 2005, the Association of Payment and Clearing Systems (Apacs) believes.
A small device into which a chip and pin card gets inserted will be the next frontier in the battle against online banking fraud and identity theft, Computer Weekly reports.
The technology, similar to the device which is currently being trialled by Lloyds TSB, will generate once-off passwords when the card is inserted. This password will then be used to confirm that access may be given to the online banking customer.
All major UK banking institutions that are affiliated to the payments organisation, as well as credit card firms Visa and Mastercard, will reportedly use this new technology after trial versions are tested over the next few years.
"Banks need to be aware that two-factor authentication makes fraud harder to perpetrate, but it's not a total solution," Paul Leckie of Unisys global financial services told Computer Weekly.
"Banks have to monitor all of their customer interactions, not just transactions. Fraudsters might request an address change and a credit check before perpetrating a fraud," he pointed out.
Apacs: Online banking to get standard
Financial Services > e-banking > Banking news
Apacs: Online banking to get standard
Tue, 18 Oct 2005
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