ActivCard has signed an agreement with MasterCard to deliver a Chip Authentication Program (CAP) approved authentication server that is capable of operating over multiple channels.
The ActivCard server is based on the 4Tress system acquired by the vendor when it bought out UK-based Aspace in January this year. The technology enables banks to authenticate and audit customer activity across a range of channels.
The vendor says MasterCard's member banks will use the 4Tress authentication server to verify users and transactions in card not present environments, such as e-commerce, m-commerce, online and phone banking and mail order.
When using MasterCard CAP for two-factor authentication, a customer inserts their plastic payment card into a small hand-held compliant reader. The user enters the PIN and the card generates a one-time-password, which is displayed by the reader.
The password is then submitted to the bank via a Web site or over the phone, where it is validated by the authentication server in order to verify the identity of the cardholder and the transaction.
Fikret Ates, vice president, chip product management, MasterCard, says: "We see ActivCard 4Tress authentication server playing an important role in helping member banks to implement a multi-channel, multi-services CAP programme rapidly."
Ben Barnes, CEO, ActivCard, says: "Given the recent rise of phishing attacks and identity theft, banks are looking for a secure way to validate that customers are who they say they are."