A New Way to Authenticate

New Zealand Bank ASB is using a new system of authentication for Internet payments that involves users' cell phones. For transfers of more than $2,500 to a third party, the bank sends out an eight-digit text message to the bank customer's cell phone. The customer must access and enter the code within three minutes to complete the transaction. The code provides another layer of security to the existing password log-in protection. U.S. company RSA Security developed the service, which is called Netcode. Bank customers pay 25 cents per code and can set lower limits on transaction amounts if they want.

Copyright © 2005 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 15, No. 1, 2/05