Latest FDIC Findings on Identity Theft Suggest Need for New Safeguards for Internet Banking
The FDIC has announced new findings regarding identity theft associated with Internet banking in an update to an earlier study issued last December.
"Identity theft, particularly account hijacking, continues to grow as a problem for the financial services industry and for consumers," said FDIC Chairman Don Powell."Our review illustrates that ID theft is evolving in more complicated ways and that more can and should be done to make online banking more secure."
In the latest findings, the FDIC concluded that the risk assessment financial institutions are required to perform regarding information security also should address customer authentication. The supplement also said that if an institution offers Internet banking, it has an obligation to properly secure that delivery channel.The supplement with the new findings, titled "Putting an End to Account-Hijacking Identity Theft Study Supplement", is available for downloading online>This extra level of security for online accounts, often referred to as "multifactor authentication," would be used in addition to the traditional passwords. These new security features may include "tokens" issued to customers that generate new passwords every 60 seconds, software that can identify the computer that a customer uses to access online accounts, or contacting a customer by phone to make sure that he or she is the one attempting to access the account.
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