Who Are You?

Identity verification goes mainstream in bank security features

  • By Katie McCarthy
  • Jul 01, 2007

IDENTITY theft has changed the public's perspective on financial security. Phising scams take consumers to Web sites almost identical to their trusted bank, a stolen driver license can lead to forged checks, a stolen Social Security number can open numerous credit card accounts and card cloning has left the public vulnerable.

Financial institutions are doing their best to address consumer concerns. They are making sure that they know as much as possible about who they are doing business with. In a world where people carry cash less often, transfer money online and can sign up for a credit card in less than five minutes, identities are directly linked to a person's pocketbook. And in response to that, access to personal and corporate accounts need to be monitored more strictly. In the age of the Internet, the question that banks should ask is who are you?

Multi-Factor Authentication
"Right now, financial institutions are under increased pressure from consumers and the government to increase security around customer identification relating to the Internet and other transactions where individuals are not present," said John Lazzaro, vice president of financial services, VoiceVerified.

Federal pressure is coming in the form of increased regulations. The Federal Financial Institutions Examination Council (FFIEC) has issued the "Authentication in an Internet Banking Environment." Designed for banks offering Internet-based financial services, the guidance describes enhanced authentication methods that regulators expect banks to use when authenticating the identity of customers using online products and services. Examiners will review the progress of financial institutions. The deadline for compliance is the end of 2006.

There also is a movement to define exactly what enhanced authentication methods means. Many businesses understand that to mean multi-factor authentication. The National Institute of Standards and Technology has yet to release a specific definition for what multi-factor authentication is, leaving banks exploring their options while they wait.

Identification can come in many forms.

"It can be a combination of something you have, something you are and something you know. In the real world, it's something you have which is your card and something you are, which is your signature," Lazzaro said.

Creating an identity online is different. During an Internet transaction, you lose the physical card and your physical presence. And since a password and a PIN could be stolen, there must be another form of authentication. Financial institutions need to make sure that you are who you say you are.

Speak Up
Simply speaking is a great way to identify yourself. Voice is as unusual as a fingerprint and unlike a password it can't be stolen. With this technology, you can identify yourself from any telephone all across the world.

Small banks are realizing the potential of listening to their customers in a whole new way.

Somerset Trust Co. uses technology from VoiceVerified to secure high-risk transactions. Used as authentication for wire transfers, the bank predicts usage across all banking services requiring multi-factor authentication, including its call center, telephone, online and bill pay services.

"We are intrigued by the possibility of voice being the only method of authentication needed beyond username/password in the future -- a single-user credential that can be used for every aspect of the customer relationship," said Richard Stern, senior vice president and treasurer of Somerset.

The enrollment process protects against theft. Voice authentication is deployed through a 90 second process where an individual is requested to recite a series of random, five-digit numbers. From that series of numbers, an electronic voice print is created. And the voice print can't be recorded or replicated to try to hack into the system. Each time the customer calls in, they are asked to repeat a different number that is compared to their voice print, and the individual is identified, Lazzaro said.

"As the criminal element out there can steal all your information and passwords that are static, things like voice verification are dynamic. You can't steal someone's voice and the pass code changes every time. It's a very viable solution to identity theft," Lazzaro said.

International Credentials
For larger companies, the concern with multi-factor authentication is being able to do business all over the world.

"Identity authentication is a key focus because when you do cross-borders transactional processing, you want to be able to authenticate the parties to the transaction. And that it is really who they say they are," said Andrea Klein, chief marketing officer, IdenTrust.

Developed as a tool to address the technical aspects of identity management, IdenTrust solutions also provide a legal and global interoperable environment for using identities. As a bank-built identity company, IdenTrust enables businesses to actively manage their e-commerce risks through trusted relationships. IdenTrust supplies legal mechanisms that allow trading partners to trust the other's identity.

Letting a company manage a bank's identity management requirements allows U.S. banks to stay within compliance. In Europe, it's streamlining how they do business. Two areas where identity management is crucial are the Single European Payments area, which focuses on integrating payments across borders, and the market and financial industry directive for a single European Settlement Mechanism.

As the Internet gains popularity, IdenTrust credentials might be able to save companies travel time. Today, businessmen and women fly in to confirm their identity. In the future, with the proper paperwork, they may be able to easily open an account across borders in a safe, secure manner.

Moving On
By the end of the year, multi-factor authentication will be the standard. New solutions will hopefully cut down on the amount of identity theft. For now, it's important that the topic continues to be discussed and that consumers know how to protect themselves. Financial institutions are using cutting-edge technology to protect their customers. And it seems that technology is doing a great deal letting the world know who each of us are.

Featured

  • Cost: Reactive vs. Proactive Security

    Security breaches often happen despite the availability of tools to prevent them. To combat this problem, the industry is shifting from reactive correction to proactive protection. This article will examine why so many security leaders have realized they must “lead before the breach” – not after. Read Now

  • Achieving Clear Audio

    In today’s ever-changing world of security and risk management, effective communication via an intercom and door entry communication system is a critical communication tool to keep a facility’s staff, visitors and vendors safe. Read Now

  • Beyond Apps: Access Control for Today’s Residents

    The modern resident lives in an app-saturated world. From banking to grocery delivery, fitness tracking to ridesharing, nearly every service demands another download. But when it comes to accessing the place you live, most people do not want to clutter their phone with yet another app, especially if its only purpose is to open a door. Read Now

  • Survey: 48 Percent of Worshippers Feel Less Safe Attending In-Person Services

    Almost half (48%) of those who attend religious services say they feel less safe attending in-person due to rising acts of violence at places of worship. In fact, 39% report these safety concerns have led them to change how often they attend in-person services, according to new research from Verkada conducted online by The Harris Poll among 1,123 U.S. adults who attend a religious service or event at least once a month. Read Now

  • AI Used as Part of Sophisticated Espionage Campaign

    A cybersecurity inflection point has been reached in which AI models has become genuinely useful in cybersecurity operation. But to no surprise, they can used for both good works and ill will. Systemic evaluations show cyber capabilities double in six months, and they have been tracking real-world cyberattacks showing how malicious actors were using AI capabilities. These capabilities were predicted and are expected to evolve, but what stood out for researchers was how quickly they have done so, at scale. Read Now

Most   Popular

New Products

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • QCS7230 System-on-Chip (SoC)

    QCS7230 System-on-Chip (SoC)

    The latest Qualcomm® Vision Intelligence Platform offers next-generation smart camera IoT solutions to improve safety and security across enterprises, cities and spaces. The Vision Intelligence Platform was expanded in March 2022 with the introduction of the QCS7230 System-on-Chip (SoC), which delivers superior artificial intelligence (AI) inferencing at the edge.

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.