Banks Batten Down

By Steven Marlin and Tony Kontzer, Information Week

Phishing begat pharming. The rogue employee stealing data evolved into conspiracy rings of people getting jobs solely to lay their hands on customer data. The crooks keep coming up with more devious and efficient ways to steal customer data and turn those ill-gotten identities into cash.

Banks sit at the forefront of trying to break that chain. Yet even as they scramble to head off threats, they haven’t changed much about the way they interact with customers online. Few ask for more than an identifying number—often a Social Security or account number—and a simple password. Customer convenience has loomed larger than fear of cybercrooks.

But fear might be starting to win out. Last week, the largest U.S. online banker, Bank of America Corp., moved toward a stronger authentication process for its 13.2 million online customers, which it will offer free and make mandatory by year’s end.

For this complete story, please visit Banks Batten Down .