Two-Factor Authentication Gains Momentum in the U.S. Banking Market

American Bank and Stonebridge Bank to offer their two-factor authentication for online banking customers


BEDFORD, Mass. -- RSA Security Inc. announced that Allentown, Pennsylvania-based American Bank and West Chester, Pennsylvania-based Stonebridge Bank will offer their online banking customers RSA SecurID(R) two-factor authentication technology to deliver a more secure online user experience. These organizations join a growing roster of leading consumer-facing institutions, such as America Online, Banco de Credito e Inversiones (Chile), Credit Suisse, E*TRADE Financial and Volkswagen Bank, in offering consumer identity protection based on RSA SecurID two-factor authentication technology. A December 2004 report by the Federal Deposit Insurance Corporation recommended financial institutions consider "upgrading existing password-based single-factor customer authentication systems to two-factor authentication."

A May 2005 survey of 8,200 consumers commissioned by RSA Security showed that over 80 percent of respondents felt threatened by online identity theft and online fraud. The survey, conducted by Lightspeed Research, also showed that 80 percent of respondents would have more trust in their account provider -- and greater confidence in transacting online -- if their provider offered a hardware-based strong authentication solution. In addition, 44.5 percent of those surveyed said they would be more likely to switch account providers if a competitor offered hardware-based two-factor authenticators.

RSA Security's new customers recognized that security concerns could inhibit consumers' willingness to bank online, and understood the potential benefits that come with delivering strong authentication to their online customers. By offering RSA SecurID tokens, these organizations provide online banking customers with the option to leverage an easy-to-use security solution that helps protect both identities and personal assets. Offering two-factor authentication also helps enable these banks to move more transactions to online channels, and creates a competitive advantage. RSA SecurID two-factor authentication technology is based on something you know (a password or PIN) and something you have (the authenticator), which displays a random 6-digit number that changes every sixty seconds -- providing a much more reliable level of user authentication than static, reusable passwords.

"With the increased reports of phishing, pharming and other fraud techniques, there has been a groundswell of concern over whether personal online information is secure," said Fred Schea, chief financial officer at Stonebridge Bank. "We are pleased to be working with RSA Security to provide our customers the peace of mind associated with knowing their vital financial and personal data is strongly protected by a leader in the IT security market."

"As a financial institution with a strong Internet presence, we believe we need to provide our customers the necessary tools that enable them to securely conduct business online," said Mark Jaindl, president and chief executive officer at American Bank. "American Bank recognizes RSA Security's commitment to protecting online consumers, and it only makes sense for us to offer this trusted resource to our customers. RSA SecurID technology is a convenient, cost-effective solution that should help instill confidence in our online banking customers."

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