More banks, driven by rising online identity theft and regulators’ concerns, are shopping for security technology to help ensure those logging into accounts are the customers they claim to be.
But while banks want security that is stronger than standard user names and passwords, they also don’t want the technology to turn off customers by diminishing the convenience of online banking.
Industry analysts think banks will employ several techniques to weigh risk and verify identities. One way is to halt any transactions from certain computers or countries with a high fraud risk. In addition to a user name and password, some of these new security systems add a fairly obscure personal question, such as “What was your high-school mascot?” Some also allow banks facing a suspicious transaction to send an extra four-digit security code for use online to a customer’s cellphone.