VirtualBank Strengthens Online Banking Security with PhoneFactor

The Business Challenge:

VirtualBank, the Internet banking subsidiary of Lydian Private Bank, was searching for a customer-friendly way to further protect their online banking logins. For VirtualBank, Money Magazine’s “Best Online Bank,” only the highest level of security would suffice, and many of the solutions they considered, such as security tokens, fell short of protecting against online banking trojans and man-in-the-middle attacks. They wanted to create a simple, convenient solution suitable for their entire customer base that was flexible enough to address all usage scenarios without sacrificing strong security. And finally, they wanted to develop a partnership with an authentication security provider that was based on reliability, flexibility, and affordability. They found that partner in PhoneFactor.

The Solution:

In addition to existing security measures, VirtualBank customers now also authenticate with PhoneFactor when additional verification is needed, such as while logging in from an unknown computer. When this occurs, the customer receives an automated phone call after entering their user name and password. They simply answer the phone and enter a passcode to complete the login. VirtualBank has branded the process they have built around the PhoneFactor service “PhoneGuardian.”

PhoneFactor is used to authenticate logins that are considered high risk based on a custom algorithm that examines numerous parameters at the time of login. If a user gets an authentication call when they are not logging in, a fraud alert can immediately be sent to VirtualBank to instantly lock the account and protect the client.

VirtualBank swiftly achieved their goals:

• Simplicity & Convenience: Their customers have a non-intrusive, convenient security solution – there are no questions to answer, no tokens to carry, and no impact on their day-to-day online banking experience.
• Flexible, Strong Security: PhoneFactor’s out-of-band solution helps protect them from today’s most sophisticated threats.
• A Solution for All Customers: They proudly offer PhoneGuardian powered by PhoneFactor to all of their online banking customers free of charge.
• A Partnership to Build Upon: VirtualBank continues to cultivate their relationship with PhoneFactor to offer the best in online banking authentication security today.

“Security comes first for us at VirtualBank and we are constantly working to make it better. We feel equally as strong about our client’s on-line experience and the impact that all the security protections have on them. PhoneFactor enables us to both meet today’s security needs while offering a superior user experience.” – Frank Barbato, Chief Information Officer, VirtualBank