New York Times on banking and two-factor
Our friends at the New York Times point out that the common "two-factor" system in use by online banking websites doesn’t really work that well.
Banks recognized that adding a lot of inconvenience to the online banking process would clearly decrease user satisfaction and, ultimately, system use overall. They particularly single out token-based solutions as problematic:
Banks immediately knew what they did not want to do: ask customers to download new security software, or carry around hardware devices that feed them PIN codes they can use to authenticate their identities. Both solutions would add an extra layer of security but, the banks believed, detract from the convenience of online banking.
The good news is that PhoneFactor is a solution that can address the two-factor problem, using hardware, without the distribution and management problems or the user inconvenience commonly associated with token-based systems. It is is in use at tons of sites already, and we’ve had nothing but positive user responses.
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