Two-Factor Authentication To Improve Banking Security
Posted: Jun 15, 2017
From past few years, online banking is witnessing tremendous growth including mobile phone-based online banking. The facility of online banking has brought great convenience and efficiency for users and customers conducting day to day monetary transactions in a multi-device or location independent environment. They can access online services using several mobile devices such as tablets, notebooks, and smartphones to pay their bills, do online shopping, etc. from anywhere in the world.
Mobility is causing a wave of digital transformation across various industries especially shopping and banking industry. It provides excellent growth in the field of finance and banking sector by providing convenience and flexibility.
What is the main threat for online banking system?
No doubt online payable systems have changed the way we shop. There is a huge decline in the traditional payment methods like cash and cheque payment. People are more inclined towards the online paying methods.
But along with us, there are some other flocks of people who are also attracted towards online an approach, we called them cyber criminals or cyber attackers. The traditional way of protection (passwords) is losing its root nowadays. For cyber criminals cracking a password (even a strong one) is not a difficult task.
What is the solution?
As hackers are learning and acquiring new skills each day, there arose need of a solution that can overcomes the problem of password threat. A solution that protects passwords and adds an additional security layer.
How is two-factor authentication adding security?
Before explaining how it adds security, it is must to know what is two-factor authentication (2FA) and what is its concept?
The solution protects the resources with two different security levels. To get an access to a resource, users have to prove his identity at two stages. The first stage is generally the username and password. The most common way of authentication.
Once the user has done with the credentials (first part), the second stage is in front of him that he needs to clear to get authentication.
There are several factors acts a security barrier for the second stage. The very common factor that is using as the second factor is phone verification. In this approach, a code will be sent to the users phone in the form of OTP (one-time password). To get the authentication, the user has to enter that code.
The another approach is adding a question as a second factor. In order to get access, user has to give answer of that particular question. But the approach is not enough secure because answers can be guessed.
The third and the most secure approach is implementing biometric. In this to get authentication, user has to prove his biometric identity. Biometric identity includes his fingerprints, voice, eye retina etc. This approach is almost impossible for cyber criminals to hack.
Banks and finance companies are implementing 2FA solution alarmingly to achieve more sales and security. Keeping users account safe and secure is the first priority of any business and in this move, implementing 2FA is definitely a wise decision.
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