Security concerns prompting banks to invest in multi-factor authentication

Posted on: January 16th, 2013 by Art Barger

It shouldn’t come to anyone’s surprise that account takeover attacks are up around the globe. With fraud against financial institutions on the rise, what will banks be focusing on in the coming year? That’s the question recently posed to Bill Nelson, president and CEO of the Financial Services Information Sharing and Analysis Center (FS-ISAC).

The recent BankInfoSecurity article, “New Insight on How to Respond to 2013’s Top Fraud Trends,” suggests that fraud attempts against banks and credit unions will continue to increase this year. While the number of attacks is certainly a growing concern with the global banking community, it has also prompted financial institutions to take extra security precautions to help reduce the amount of losses resulting from account takeovers and other fraud attacks, said Nelson.

“[Account takeover] attempts are up, and we’re really seeing that around the world… The good news is that financial institutions are doing a good job to detect and prepare for these attacks.”

Because stronger security measures have contributed to a decline in actual fraud losses, Nelson believes the financial services industry will continue to see more investment in anomaly detection and multi-factor authentication in 2013 to help banks verify the increasing volume of customer transactions. We at TRUSTID strongly agree. Deploying a multi-factor authentication strategy can play a critical role in preventing fraud across all banking channels.

With tens of thousands of calls coming into bank call centers every day, financial institutions need a way to quickly and non-intrusively identify whether every customer call can be trusted or not. The TRUSTID® Physical Caller Authentication tool does this by verifying the physical location of the telephone calling in before the call is answered. By validating whether the call is coming from a legitimate customer or poses a risk, TRUSTID gives financial institutions have an additional layer of authentication that allows them to serve good customers faster or stop known spoofed calls before a criminal has a chance to socially engineer a contact center agent.

In 2013, financial institutions investing in complementary authentication solutions like TRUSTID will achieve true multi-factor authentication that is recommended today for protecting banking channels from account takeovers and other unwanted criminal activity.