Here’s an interesting article from the BankInfoSecurity.com website regarding authentication technology:
With the December deadline approaching for implementing better authentication for online banking systems, financial institutions are hard-pressed to come up with technology solutions that will satisfy regulators. It’s going to be a race to the finish line to meet the deadline set by the Federal Financial Institutions Examination Council (FFIEC).
As of July, only 16% of financial institutions had implemented authentication technology capable of meeting FFIEC requirements, according to a survey by Roth Capital Partners. In the same survey, only 5% said they intended to use hardware tokens to meet the FFIEC requirements; hardware tokens, which are devices that plug into a computer’s USB port, are a form of multifactor authentication, which is based on something the user knows, such as a password, and something he has (the token).
Banks have more than the FFIEC to be concerned about; there’s mounting evidence that consumers are leery of conducting transactions online for fear of having their identities stolen. Studies reveal that retail consumers are quitting online banking altogether, and are going back to conducting transactions in person, despite the obvious inconvenience.
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