Consumer Authentication for Retail Banking
Tom Wills, Senior Analyst, Security and Fraud, at Javelin Strategy and Research has published a new report titled "Consumer Authentication for Retail Banking: Compliance Does Not Equal Security".
"With the majority of financial institutions in compliance after the frenzied rush to meet the authentication requirements of the 2005 FFIEC Guidance, a number of financial institutions have relaxed into a satisfied mode. Compliance is not security, however, and complacency increases risk. Weaknesses have already been proven for widely adopted methods such as mutual authentication and device recognition."
In this report, Javelin takes a hard look at how two-factor authentication has impacted consumers’ attitudes toward online banking, as well as some of the obstacles that banks continue to face despite the stronger verification controls that are now required to authenticate online bankers. Included is a projection of the number of consumers that would bank online if institutions could provide the necessary assurance and education to prevent them from worrying about security.
PPrimary Questions
- Three years on, what are the lessons learned from meeting the 2005 FFIEC Guidance, and how can they be applied for financial institutions (FIs) considering deployment of multifactor authentication for other channels, such as telephone or mobile?
- How has the 2005 FFIEC Guidance impacted consumer usage of, and attitudes toward, online banking and its security measures?
- How do security concerns figure into some consumers’ reluctance to embrace online banking, and how can FIs overcome these obstacles to increase adoption?
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