Having completed a successful five month pilot study, the National Australia Bank is set to use a new technology system designed to increase payment security for its internet banking customers.
According to the bank, the free service utilizes Short Message Service (SMS) two-factor authentication technology to protect customer funds from internet banking fraud. It works by sending a randomly generated, one time only code via SMS to the customers’ mobile phone after initiating an online payment. This code is then entered into the payment confirmation screen to complete the process.
The two-factor identification software is designed to prevent fraudulent activity by restricting non-authorized users from completing a third party payment, since only a registered mobile phone can be used in the process.
The National Australia Bank (NAB) said its internet banking customers can request the service by sending a secure message from within their internet banking session.
Head of channel solutions, deposits and retail transactions at the NAB, Ean van Vuuren, added: This project was a collaborative effort between the National and Telstra using technology based answers to help reduce fraudulent online banking transactions.