Friday, September 11, 2009

The $8.3 Billion Case for Multi-Factor Authentication

A recent study by the Javelin Strategy & Research revealed that 67 percent of US consumers do not bank online because they fear identity theft. Fifty-three percent of those surveyed would like to see their bank’s use identity protection software, and 33 percent would like to see their bank use biometrics. The study concluded that banks could add $8.3 billion per year through customer loyalty by making identity protection software available to their customers.

What is Muti-Factor authentication in an online banking environment?

Multi-Factor authentication (a form of security based on “what you know” and “who you are”) combines two or more different security methods for authenticating a user’s identity. The security method combines “what you know,” password’s, PIN’s, DOB, SSN, mother’s maiden name, and “who you are,” biometrics technology such as voice authentication, fingerprint and iris.

How does voice authentication work in an online banking transaction?

The customer will first need to enroll in their bank’s online banking. After, the customer will need their account number, credit or debit card number issued by the bank, the card’s PIN number, Social Security Number, phone, and internet service to create a voice print.

There are a number of voice biometrics technologies and methods to perform voice authentication for online banking. One common method requires a phone, computer and internet access, the other only requires a computer and internet access.

The first method the customer will need to enroll into the bank’s online banking service. At the end of the enrollment the customer would enter their immediate phone number on the bank’s website to initiate an out-of-band phone call from the bank to the customer and begin the voice authentication enrollment process. The customer will be asked to enroll into the voice authentication system by asking them to repeat a number or phrase to create a voice print. To access the account online the customer will need to enter their account number and immediate phone number on the bank’s website. The bank will launch an out-of-band call to the customer, and the customer will verify their account by repeating a number or phrase. The customer will gain access to the account online, after their voice has been authenticated.

The second method the user would download a small piece of software onto their computer from the bank’s website, after successful completion of their online enrollment. The customer will enroll into the voice authentication software and create a voice print "at" their computer. To access the account online, the customer will need to enter their account number on the bank’s website and click a voice authentication button. The customer will get a pop-up message to authenticate their voice and will verify their account by repeating a number or phrase. The customer will gain access to the account online, after their voice has been authenticated.