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An article relating to this blog post on Finextra:

HSBC investigates 'out of band' authentication for Web users

HSBC is investigating 'out of band' authentication security for online banking - in which unique ID log-in codes are communicated by telephone - as a possible alternative to the two factor card reader...

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HSBC and Abbey are not lemmings on chip and pin

I applaud HSBC and Abbey National for not being lemmings on the European push to chip and pin for online banking. 

They are considering alternative methods for two factor authentication, that are both less intrusive for customers, and potentially more effective.

Finextra: HSBC investigates 'out of band' authentication for Web users

HSBC and Abbey have so far opted-out of the national banking industry push to supply online account holders with Chip and PIN-style home banking technology. Such systems are considered vulnerable to man-in-middle attacks and require the consumer to carry a personal card reader at all times.

Comments: (1)

Nick Collin
Nick Collin - Collin Consulting Ltd - London 24 September, 2007, 11:06Be the first to give this comment the thumbs up 0 likes I'm surprised that HSBC is lukewarm about "Chip & PIN at Home".  This approach has been successfully adopted by several major European banks such as ABN AMRO, Rabobank, KBC and Nordea, to name but a few, and has now been launched by RBS and Barclaycard in the UK, supported by APACS.  Contrary to the previous blogs it is not vulnerable to man-in-the-middle attacks provided transaction data signing is used - typically the user enters the beneficiary's account number on the reader as well as the PIN which means fraudulent attempts to transfer money to another account are foiled.  Chip & PIN at Home is highly secure, cost-effective, familiar, and works across any remote channel (ie phone as well as internet; remote payments as well as remote banking).  By contrast HSBC's phone-based approach sounds highly expensive, inconvenient, applicable only to e-banking, and unproven.

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