Business Bank of Nevada adds multi-factor authentication to Web banking system

Source: Business Bank of Nevada

Business Bank of Nevada (OTC Bulletin Board: BBNV), which is merging with City National Bank (NYSE: CYN) early next year, today announced that it has launched a new multi-factor authentication security system for its 'Always On Banking' Internet product.

Beginning today, the Bank's new enhanced security feature, which is called Premier MFA Device Print, will provide online banking customers with increased protection from fraud and identity theft.

The rollout of this new Internet security feature was in accordance with the Federal Financial Institutions Examination Counsel's (FFIEC) guidance identifying the need for more stringent risk management controls in the area of Internet banking customer authentication. The federal government is requiring that financial institutions in the United States have a multi-factor authentication security system in place by December 31, 2006 or face possible fines or suspension of their Internet banking product.

"Internet banking has become a convenient tool for both individuals and businesses to manage their account activity, but with today's increasing threat of identity theft and fraudulent activity over the Internet, we've taken greater measures to reassure our customers that we have cutting edge technology that allows them to bank in a safe and secure environment," said Larry Charlton, executive vice president and chief operating officer of Business Bank. "Our new multi-factor authentication Internet security system is state-of-the-art and one that will definitely provide our customers with greater peace of mind when using our Internet banking products."

Charlton added that the multi-factor authentication format uses randomly selected images and challenge questions as added features to make its Internet banking products more secure. The new Internet banking security system also identifies the customer by the IP or MAC address, as well as user ID and password access. This new system allows both the Bank and the customer to authenticate password and PC forensics in a non-intrusive way.

The Bank is also incorporating its new security system into its 'Always On Cash Management' Internet banking product early next month. In addition to the new system for online cash management users, the Bank is taking the security process one-step beyond what the federal government is requiring for customers who move money out of the Bank through ACH and wires. These clients will use a password generating token system that randomly generates a new, unique password for each login attempt.

"After completing a thorough risk assessment of our Internet banking products and the needs of our clients, management determined that we needed to take extra precautions for customers who moved money out of the Bank," Charlton said. "While we weren't required by the federal government to implement the token system for online cash management users, we wanted these customers to realize that we're clearly looking out for their best interests."

The Bank is also working on a number of other Internet banking products that should be rolling out prior to or shortly after the first of the year. One of these products includes Online Bill Pay for consumers. The Bank is currently testing its systems and conducting internal training of staff in an effort to launch this convenient and more efficient way of paying monthly bills. The Bank is also looking at rolling out an Online Bill Pay product for businesses sometime next year.

Following the completion of the merger and systems conversion between Business Bank and City National Bank, Nevada customers will have access to a wider array of products and services such as City National Bank's Remote Deposit Capture services. Soon after the deal is completed, City National Bank will also provide Nevada clients with locally based Wealth Management, Private Banking and Mortgage Lending services.

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