27 May 2017
Find out more

US regulator urges banks to upgrade Internet security

15 December 2004  |  8017 views  |  0 online enter

The Federal Deposit Insurance Corporation is urging US banks to abandon single password-based ID systems in favour of two-factor authentication following a sharp rise in 'account hijacking' ID theft.

The outline guidance follows an FDIC investigation into the problem, which suggests that unauthorised access to bank accounts is the fastest growing form of identity theft.

In publishing its findings, the agency points to Federal Trade Commission estimates that almost 2 million US adult Internet users experienced this type of fraud during the 12 months ending in April 2004. Of those, 70% did their banking or paid their bills online and over half believed that they had received a phishing e-mail.

The FDIC says that fraudsters are taking advantage of the reliance on single-factor authentication for remote access to online banking, and the lack of e-mail and Web site authentication, to perpetrate account hijacking.

The regulator says financial institutions and government agencies should consider a number of steps to reduce online fraud, including upgrading existing password-based single-factor customer authentication systems to two-factor authentication systems.

The FDIC says banks should also use scanning software to pro-actively defend against phishing attacks. Customer education and information sharing among banks is also recommended.

The FDIC says it hopes to use the study to formulate guidance to bankers next year. Comments are invited by 11 February, 2005.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

RSA signs Commerce Bank for two-factor authentication

RSA signs Commerce Bank for two-factor authentication

14 December 2004  |  4975 views  |  0 comments
More banks turning to biometric authentication

More banks turning to biometric authentication

10 December 2004  |  8977 views  |  0 comments
US task force trawls for phishers

US task force trawls for phishers

10 December 2004  |  5929 views  |  0 comments
Phishing scams soar in 2004

Phishing scams soar in 2004

07 December 2004  |  6400 views  |  0 comments
Phishing fraud losses exaggerated - TowerGroup

Phishing fraud losses exaggerated - TowerGroup

02 December 2004  |  11145 views  |  0 comments
ING Luxembourg to roll out Vasco Digipass authentication tokens

ING Luxembourg to roll out Vasco Digipass authentication tokens

30 November 2004  |  5812 views  |  0 comments
Rise in phishing as cyber crooks automate attacks

Rise in phishing as cyber crooks automate attacks

26 November 2004  |  6752 views  |  0 comments
ID theft fears scare off online consumers

ID theft fears scare off online consumers

24 November 2004  |  7751 views  |  0 comments
NatWest suspends online services in response to phishing fraud

NatWest suspends online services in response to phishing fraud

17 November 2004  |  8586 views  |  0 comments
MessageLabs warns of new phishing scam

MessageLabs warns of new phishing scam

03 November 2004  |  6891 views  |  0 comments
Visa talks up authentication technology ahead of holiday season

Visa talks up authentication technology ahead of holiday season

26 October 2004  |  5119 views  |  0 comments
US Bancorp deploys VeriSign Unified Authentication system

US Bancorp deploys VeriSign Unified Authentication system

26 October 2004  |  4320 views  |  0 comments
Brazillian police arrest 53 for $30 million phishing fraud

Brazillian police arrest 53 for $30 million phishing fraud

22 October 2004  |  6274 views  |  0 comments
Entrust releases new authentication product as Internet confidence wanes

Entrust releases new authentication product as Internet confidence wanes

20 October 2004  |  4737 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Download the paper nowvisit vasco.com/news/PSD2-compliant-solutionsvisit www.niceactimize.com

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
12510 views comments | 49 tweets | 78 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7496 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
6390 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
6386 views comments | 12 tweets | 20 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job