Conclusion: The securing of online banking through one time passwords delivered via SMS: provides two factors of authentication, is cheaper to deploy than tokens, increases the customers’ sense of security, and introduces online banking customers to the idea of secure banking on their mobile phones.

However, introducing a widely adopted, variable-cost, service like one time password via SMS is not sustainable because it is inevitable that the cost of the SMS service will exceed the cost of online fraud, which is already at very low levels1. Until mobile banking and EMV smartcards become more commonplace, banks should choose the better strategy of using SMS authentication, as it supports the product roadmap for online and mobile banking.

Existing Client Login



Read more ...



James Turner

About The Advisor

James Turner

James Turner is an IBRS emeritus Advisor who specialised in cyber security and risk and facilitates the CIO Cyber and Risk Network on behalf of IBRS. James has over a decade of experience as an industry analyst and advisor; researching the cyber security industry in Australia. As an IBRS Advisor, James authored over 100 IBRS Advisory papers, led dozens of executive roundtables, and presented at numerous conferences.