Australian banks to introduce two-factor authentication

Australian banks are set to introduce an industry standard for two-factor authentication for verifying online banking customers later this year.

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Australian banks to introduce two-factor authentication

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David Bell, CEO of the Australian Bankers Association (ABA) told reporters that each bank will be free to choose its own method of secondary identification for Web banking customers.

He says research by the bankers group has found that customers do not want to use biometric devices for authentication. Instead, banks are likely to adopt mobile messaging systems or token-based random number generators.

The plans were revealed as ABA member banks and the Australian High Tech Crime Centre (AHTCC) launched an advertising campaign warning customers about protecting personal details online. According to ABA figures, Australia's banks lost A$10 million to online fraud last year.

Mick Keelty, commissioner, Australian Federal Police, says: "Figures show that round 40% of the Australian population bank online and there are simple steps they can take to protect themselves from becoming victims of Internet-based fraud."

Bell says that all users of the Internet have a responsibility to protect themselves against online crime.

"In the same way they buy cars with safety and security features to protect themselves, anti-virus and firewall protection should be installed on the home or business computer," he adds.

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