Feds Want Banks to Strengthen Web Log-Ons

[cynatnite]

snip:
In two-factor authentication, customers must confirm their identities not only through something they know, like a PIN or password, but also with something they physically have, like a hardware token with numeric access codes that change every minute.

Other types of two-factor authentication include costlier hardware involving biometrics or "smart" cards that would be inserted into designated readers on a user's computer.

Banks might also issue one-time passwords on scratch-off cards or require "secret questions" about a customer's account, such as the amount of the last deposit or mortgage payment.

The council also suggested that banks explore technology that can estimate a Web user's physical location and compare it to the address on file.

http://news.yahoo.com/s/ap/20051018/ap_on_hi_te/internet_banking_security