While technological change is slow in the banking industry, consumers are demanding more innovation along with heightened security. Many large banks are trying to remain competitive through increasing their convenience by means of a push to their online banking applications. As this becomes an increasingly common mode of making bank transactions, hackers are finding ways to breach online account information.
IBM has released a new devise that uses the same hardware as a USB drive in order to counter these would be attacks by hackers. It is called the Zone Trusted Information Channel (ZTIC). When the ZTIC is plugged into your computer it is able to bypass the PC software and “create a direct, secure channel to a bank’s online transaction server”. Currently banks use two-factor authentication methods such as, PINs and one-time validation codes, to provide security for online transactions.
However, these are not enough to inhibit sophisticated hackers who can redirect and change the information flow in a PC. The IBM press release states that “nearly 90 percent of identity attacks online are targeted at the financial services sector”. Clearly a heightened form of security, like the ZTIC, is necessary to protect customer’s sensitive financial information.
The ZTIC is one way for banks to remain competitive and try to gain new customers. The first banks to get access to ZTIC technology will be able to better market the security of their online banking features, which will make them more distinguishable in the banking industry.
The ZTIC is easy to use and requires no additional software configuration on either the bank’s server or a customer’s PC. This makes implementation fast and easy with reduced costs when compared to other security devices pointed out in the article. There are only two buttons on the ZTIC for confirmation, “OK” and “X” (cancel). The ZTIC has already been manufactured and is ready for pilot tests. So hopefully we will be seeing this new technology in the near future, especially as online banking becomes more popular.
Sources:
http://www.zurich.ibm.com/news/08/ztic.html
http://www.zurich.ibm.com/ztic/
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4 comments:
I think Zone Trusted Information Channel (ZTIC) will be a good solution to prevent the escalating number of identity theft going on in this country. Although lot of banks does have security features built in to their online banking system, I also think that it is not enough. The customer should have the option to request an added layer of security. I think ZTIC will be awesome solution for that. I know PayPal currently uses a similar technology where you can buy security key for a small amount of money that generates a personalized security key every time that you log in to your account. I think this devise also provides a similar service, which means that customers in the future may have the benefit of choosing the most convenient method of added layer of security.
Do you know what the distribution channel for these devices will be? Would I get one from my bank of from Best Buy? Also, I would imagine there is some implementation necessary on the bank's side. If this is the case, I can't imaging this being available for every online banker in the near future. Maybe those who have accounts with the most major of banks would have this service. Nonetheless, it is definitely a step in the right! direction.
Alex, I think that the most likely distribution channel would be through the bank. You might have a few different ZTIC USB sticks, one for each of your accounts. I'd imagine the bank would sent this to your address when a customer opens a new account, or gets a new debit card.
This definately sounds like a soultion, however, its appears to be a temporary one. Once these devices become widely circulated, they will become a target for hackers. And we will once again be faced with the same problem. In a lot of cases, people cause their own identity thieft issues. I believe that people do not protect themselves enough. I am personally guilty of giving out to much information to a third party. Although, I understand the risk, its hard to believe the consequences. Bank employees, too, can be negligent. My friend's aunt had her identity stolen. To resolve the issue, she called the bank. The account was password protected, but the aunt did not know her password. And the employee offered her the password. Banks must train their employees against these sort of things! Negligance is a major issue.
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