More ID May Be Required for Online Banking

More ID May Be Required for Online Banking

Consumers who use online banking services could be required to provide additional identifying information each time they log in, under guidelines issued by federal regulators hoping to stem the rising tide of identity fraud and theft.

Instead of relying on just a user name and password, for example, consumers might be asked to enter an access code that is beamed to a device they carry, or to scan a fingerprint, before they can log in to their accounts.

But some computer security experts warn that the guidelines, issued last week, fall well short of needed requirements to thwart computer crime.

Greater security is a good thing, but convenience has been a driver of online banking. If it becomes too much of a hassle we could see the return of face-to-face banking which would have a negative impact on the banking industry because of the increased costs. But what’s the alternative?

We need to continue these discussions, like this article, and make sure we find a balance that minimizes risk while maximizing convenience. The technology is avialable and it could be implemented in a cost effective manner. There just needs to be a mandate and some standardization to make it happen.

22 October, 2005 |

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