Security
Security of a customer's financial information is very important, without which online banking could not operate. Financial institutions have set up various security processes to reduce the risk of unauthorised online access to a customer's records, but there is no consistency to the various approaches adopted.
The use of a secure website has become almost universally adopted.
Though single password authentication is still in use, it by itself is not considered secure enough for online banking in some countries. Basically there are two different security methods in use for online banking.
- The PIN/TAN system where the PIN represents a password, used for the login and TANs representing one-time passwords to authenticate transactions. TANs can be distributed in different ways, the most popular one is to send a list of TANs to the online banking user by postal letter. The most secure way of using TANs is to generate them by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token (two-factor authentication or 2FA). Usually online banking with PIN/TAN is done via a web browser using SSL secured connections, so that there is no additional encryption needed.
- Another way to provide TANs to an online banking user is to send the TAN of the current bank transaction to the user's (GSM) mobile phone via SMS. The SMS text usually quotes the transaction amount and details, the TAN is only valid for a short period of time. Especially in Germany, Austria and The Netherlands, many banks have adopted this "SMS TAN" service as it is considered very secure.
- Signature based online banking where all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on smartcards or any memory medium, depending on the concrete implementation.
Read more about this topic: Online Banking
Famous quotes containing the word security:
“When kindness has left people, even for a few moments, we become afraid of them as if their reason had left them. When it has left a place where we have always found it, it is like shipwreck; we drop from security into something malevolent and bottomless.”
—Willa Cather (1876–1947)
“... most Southerners of my parents’ era were raised to feel that it wasn’t respectable to be rich. We felt that all patriotic Southerners had lost everything in defense of the South, and sufficient time hadn’t elapsed for respectable rebuilding of financial security in a war- impoverished region.”
—Sarah Patton Boyle, U.S. civil rights activist and author. The Desegregated Heart, part 1, ch. 1 (1962)
“Modern children were considerably less innocent than parents and the larger society supposed, and postmodern children are less competent than their parents and the society as a whole would like to believe. . . . The perception of childhood competence has shifted much of the responsibility for child protection and security from parents and society to children themselves.”
—David Elkind (20th century)