Identity Verification in Bank Security

The public's perspective on financial security has been drastically changed by identity theft. For instance the easiness of card cloning has left the public extremely vulnerable, Phising scams take consumers to web sites that are very similar if not identical to their trusted bank, furthermore, a stolen driver license can lead to forged checks, and a stolen Social Security number can open several credit card accounts.

In order to address consumer concerns financial institutions are doing their outmost effort. To guarantee a smooth and successful operation they are making sure that they know as much as possible about the patrons involved in their business transactions. In today's world identities are directly linked to a person's pocketbook especially due to the fact that nowadays people carry cash less often, transfer money online and can sign up for a credit card in less than five minutes. However, as a result of that, access to corporate and individual accounts need to be surveyed more rigorously. Banks should be very strict about the identities of their users especially in this age of the Internet.

Verification from all Angles

According to the vice president of financial services, as of now, many financial institutions are under amplified pressure from the government as well as consumers to increase security around customer identification relating to the Internet and other transactions where people are not in attendance.

The increased regulations represent the rising federal pressure. The "Authentication in an Internet Banking Environment" has been issued by the Federal Financial Institutions Examination Council (FFIEC). This new protocol was primarily designed for banks offering Internet-based financial services. The protocol suggests advanced verification techniques that regulators expect banks to use when authenticating the identity of customers utilizing internet services and solutions. The reviewers will examine the financial institutions' progress. The end of 2006 is the deadline for compliance with the guidelines.

Adding on, there also is a movement to define exactly what advanced verification techniques exactly refers to. The majority of businesses understand that to mean verification from different points. Banks are currently exploring their options as to what this term really means since the National Institute of Standards and Technology has yet to make public a specific definition for what advanced verification techniques really refer to.

Verification measures can be carried out in many types.

However all they methods of identification revolve around things that make you who you are, things that you know or things that you have, or it can be a combination of any or all of these things. In the real world, it's something you have which is your card and something you are, which is your signature, according to the vice president of financial services.

On the other hand establishing an identity online is a totally different story. It is more than obvious that all through an Internet transaction, you lose the physical card and your actual attendance. As a result of that, there must be another form of verification especially since a password and a PIN could be easily stolen. All intuitions especially financial institutions must be able to make sure that all their patrons are truly what they say who they really are.

Audio Verification

 
A great way to identify yourself is by simply speaking up. The human voice is as remarkable as a fingerprint and unlike a password it can't be robbed. By using this technology, you can identify yourself all across the world from any telephone device.

A great number of small banks are recognizing the potential of listening to their patrons in a total new manner.

For instance, a company named Somerset Trust Co. uses technology from a famous security company called VoiceVerified to secure high-risk operations. Utilized as a verification method for wire transfers, the bank can effectively predict usage across all banking services requiring multi-factor authentication, including its call center, bill pay, telephone, and online services.

The senior vice president and treasurer of Somerset has previously reported that they were intrigued by the likelihood of voice being the only process of authentication required beyond username/password in the future; a single-user credential that can be used for every part of the consumer association.

Effective protection against theft is achieved through the enrollment process. The process of voice verification is carried out through a ninety second process where an individual is ask to recite a set of five-digit numbers in series at random. An electronic voice print is created only from that series of uttered numerical digits. Not to mention that the voice print can't be recorded or replicated in an attempt to hack into the security interface. The vice president of the company's financial services explains that every time the customer calls in, they are asked to repeat a different number that is compared to their voice print, and the individual is then successfully verified.

From the previous information we can judge that voice verification systems are extremely dynamic this makes them extremely effective against potential criminal element out there who can steal all your information and passwords that are static. It is obvious that no one can steal someone's voice and also the pass code changes every time. This makes it a very viable solution to identity and evade robberies.

Global Qualifications

The concern with multi-factor authentication for the majority of larger companies is being able to do business all over the globe.

According to the chief marketing officer of IdenTrust, verification of identity is an important concern due to the fact that when you do cross-borders transactional deployments; you want to be able to verify the parties to the process.  This will guarantee that it is really who they claim to be.

IdenTrust products also provide a legal and global interoperable environment for using identities even though it was developed initially as a tool to address the technical aspects of identity management. Furthermore, IdenTrust enables businesses to actively manage their e-commerce risks through trusted relationships this is due to it being a bank-built identity company. Adding on, IdenTrust offers legal mechanisms which enable trading partners to trust the identity of others.

U.S. banks now have the ability to stay within compliance because companies are granted to privilege of managing a bank's identity management requirements. Business is carried out in Europe in a streamlining fashion. The Single European Payments area, which focuses on integrating payments across borders, and the market and financial industry directive for a single European Settlement Mechanism represent the two areas where identity management is crucial.

In the future, IdenTrust credentials might be able to save companies travel time, due to the rapid improvements and vast popularity of the internet. To confirm their identity, businessmen and women must fly into the designated property. However in the future, they may be able to easily open an account across borders in a safe, secure manner as long as they are equipped with the proper paperwork.

Multi-factor verification will most likely be the standard by the end of the year. The amount of identity theft will be hopefully be cut down by new solutions. The important issue for the time being is that the topic continues to be discussed and that consumers know how to guard their identities.

Identity Verification Security credentials management information and passwords systems electronic voice online username/password Audio PIN Internet