From the FFIEC (Web Site) Press Releases:
The Federal Financial Institutions Examination Council (FFIEC) today released updated guidance on the risks and risk management controls necessary to authenticate the identity of customers accessing Internet-based financial services. The guidance, Authentication in an Internet Banking Environment, was issued to reflect the many significant legal and technological changes with respect to the protection of customer information, increasing incidents of identity theft and fraud, and the introduction of improved authentication technologies and other risk mitigation strategies. The continued growth of Internet banking and other forms of electronic banking activities and the increased sophistication of threats to those environments have resulted in higher risks for financial institutions and their customers. An effective authentication system is necessary for financial institutions’ compliance with requirements to safeguard customer information; to prevent money laundering and terrorist financing; to reduce fraud and the theft of sensitive customer information, often the precursor to identity theft; and to promote legal enforceability of financial institutions’ electronic agreements and transactions.
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