MasterCard International has launched new two-factor authentication methods designed to give online financial transactions more security.
The MasterCard all-in-one authentication device and MasterCard mobile authentication are based on the OneSmart Chip authentication program (CAP), currently in use in countries around the world.
The two solutions provide enhanced security by offering two-factor authentication, whereby a consumer employs something only he or she knows (such as a PIN) in tandem with something he or she has (an authentication device or a mobile phone). The mobile phone or authentication device generates a unique password for every transaction.
Last October, to help protect banks and consumers from online fraud, the Federal Financial Institutions Examination Council (FFIEC) issued guidance that directed financial institutions to upgrade from single- to two-factor authentication for high-risk online transactions. The FFIEC considers high-risk transactions to be those involving access to customer information or the movement of funds to other parties.