SMS improves banking security
Posted by MattE on 18 Aug 2006 at 04:57 pm | Tagged as: SMS
This appeared in the News Ltd online IT news
SMS is providing security for online payments and guarding against identity theft. According to a report in the Australian newspaper this week, the humble short message service is being used by a bank to provide security for online payments.
The article says the National Australia Bank has started offering SMS-based authentication for online payments. NAB technology general manager Craig Bright says the upside of SMS is “simplicity and accessibility for everyoneâ€.
When an individual wants to make a payment, the bank sends a transaction key to a designated phone. Only after they have entered the key on the website will the transaction go through. The mobile phone SIM card becomes the second security factor. Although it is not totally bulletproof, using SMS to prove a user is who he or she claims to be is much safer than relying on internet banking passwords.
Mr Bright said: “We have not had anyone who is using the SMS service subject to fraud. It is an effective measure for us and our clients.â€
The technology is quite basic, but shows that even the heavyweights have imagination when it comes to SMS use.
A very innovative security measure indeed.
Not unlike the password tokens many corporates use for their VPN access.
But the beauty lies in its simplicity - of making it available to general clients.
Thanks for bringing this to our attention, Matt.