Banks Test ID Device for Online Security

December 24, 2004 06:05 PM

Banks Test ID Device for Online Security

Excerpt: Responding to an increase in Internet fraud, some banks and brokerage firms plan to begin issuing small devices that would help their customers prove their identities when they log on to online banking, brokerage and bill-payment programs.

For years, banks gave away toasters to people who opened checking accounts; soon they may be distributing a more modern kind of appliance.

Responding to an increase in Internet fraud, some banks and brokerage firms plan to begin issuing small devices that would help their customers prove their identities when they log on to online banking, brokerage and bill-payment programs.

E*Trade Financial intends to introduce such a product in the first few months of 2005. And U.S. Bancorp says it will test a system, though it has not given a timetable.

The devices, which are hand-held and small enough to attach to a keychain, are expected to cost customers roughly $10. They display a six-digit number that changes once a minute; people seeking access to their accounts would type in that number as well as a user name and password. The devices are freestanding; they do not plug into a computer.

Some banks, like Wachovia of Charlotte, N.C., and Commerce Bancshares of Kansas City, Mo., already use these hardware tokens to identify employees and corporate customers, and say they are evaluating the technology for retail banking use. Others, like Fidelity Investments and Bank of America, are researching the matter.

"Every single major bank is considering it," said James Van Dyke, principal and founder of Javelin Strategy and Research of Pleasanton, Calif., which advises financial services companies on payments and technology issues.

READ FULL STORY ...

Banks Boost Customer Incentives, But Rates on Savings Remain Low (December 27, 2004)

Managing your financial accounts can be particularly taxing at year-end. In the fourth installment of a five-part series, Taking Account, we examine the trends in consumer banking, from cash incentives for opening a new account to fees for using a debit-card PIN. What's Going On ...

Online Bill Paying: How To Get Started (December 27, 2004)

For some computer users, paying bills online is as natural as using e-mail instead of writing a letter: it's quicker, easier and best of all, free. For others, bill payment represents the final frontier of the Internet: Can I trust a computer program to keep ...

Paper Checks Going Bye-Bye? (December 08, 2004)

The number of electronic payment transactions -- by both debit and credit card -- exceeded check payments last year for the first time, according to a survey conducted by the Federal Reserve and electronic payments companies. Electronic payment transactions totaled 44.5 billion in 2003 versus ...

Check It Out: Incentives to Pay Bills Online (December 07, 2004)

Financial institutions, eager to get more consumers to pay their bills online, are offering a new incentive: cash. Citigroup Inc.'s Citibank introduced a promotion in October offering as much as $200 to new online bill-paying customers, depending on the number of bills they pay electronically ...

Read all 22 posts in the same category of Banking:

Going Online To Balance Family Budget - Feb 17, 2005
Banks Speed Process For Opening Online Accounts - Feb 04, 2005
Online Banks Are Boosting Yields - Jan 15, 2005
Online Banks Are Boosting Yields - Jan 15, 2005
Momentum Is Gaining for Cellphones as Credit Cards - Jan 10, 2005
Rebels With A Cause, And A Business Plan - Jan 01, 2005
Banks Boost Customer Incentives, But Rates on Savings Remain Low - Dec 27, 2004
Online Bill Paying: How To Get Started - Dec 27, 2004
Paper Checks Going Bye-Bye? - Dec 08, 2004
Check It Out: Incentives to Pay Bills Online - Dec 07, 2004
'Gift Cards' May Come Loaded With Fees - Nov 29, 2004
Where To Keep Your Rainy Day Fund - Nov 29, 2004
What's Your Bill-Paying Personality? - Nov 28, 2004
Debit Cards Lack Protections Of Credit Cards - Nov 28, 2004
A New Era In Banking Begins - Nov 25, 2004
Automatic Debit Scams - Nov 22, 2004
Bank Accounts Fail To Follow Fed's Lead - Nov 12, 2004
ChexSystems Puts Him In Penalty Box - Nov 09, 2004
"Check 21" Starting in Late October - Nov 03, 2004
Gift Cards 04 - Nov 03, 2004
Save Electronic Checks for Your Taxes - Nov 01, 2004

Related Sites
• Structured Settlements
www.setcap.com - cash for structured settlements, sell annuity, lottery winnings, and more.

• Personal Finance: Finance News Today provides money saving tips, news, and articles on personal finance issues like insurance, real estate, college planning and much more.

• Compare all our 0% Credit Card UK against our 0% balance transfers and cash back deals.

• Browse through our Credit Cards deals and apply online.

• financial tip - financial tips article and more.

• Arizona llc - incorporate a arizona llc. they offer solutions for limited liability company asset protection in arizona and california. incorporation services are provided online with 24 hour filings and expedited approvals. www.paralegal-plus.com for cpa lawyers.

• Credit Repair
repairmycreditnow.com/Credit_Repair_Advice.htm - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process ™.

• Citibank Home Equity Lines of Credit: Rates as low as Prime - 0.50% variable APR for Life, currently 5.50% variable APR.

• Day Trading - day trading signals for active stock and options traders.

• Ken Langone - ken langone: make my day

• Credit Repair - repair my credit now credit services offers credit repair, restoration and education through our exclusive "v" phase process ™

• Online Option Trading - oexoptions is an oex online stock option trading company offering a free 15-day trial for all new customers.

• fix bad credit

Want to See Your Ads Here? Claim Your Ad Space at Personal Finance Weblog by Writing to Webmaster. Starting at $25/month, see your text ads in more than 2,000 indexed pages at PFBlog, the Best Personal Finance Blog, or MM Money, MM's Daily Personal Finance Readings. Full Rate Card Available Here.