Authentication key to reduce internet fraud

Washington, DC – The Federal Financial Institutions Examination Council (FFIEC), the interagency body that prescribes uniform standards for federal examinations of financial institutions, has issued new guidance on the risks and risk management controls necessary to authenticate the identity of customers accessing internet-based financial services.

The guidance, Authentication in an Internet Banking Environment, reflects the many significant legal and technological changes occurring with respect to the protection of customer information, increasing identity theft and fraud, and the introduction of improved authentication.

The guidelines specifically urge financial institutions regulated by the agencies to conduct risk-based assessments, evaluate customers' awareness programmes and develop security measures to reliably authenticate