HSBC is following Lloyds TSB in assessing the use of
hardware tokens to improve the security of online
banking.
HSBC said it was piloting hardware security tokens to provide
two-factor authentication in its Brazil and Hong Kong
operations.
Two-factor authentication relies on a hardware token that the
customer uses to generate a unique number which must be keyed in as
part of the log-in process.
HSBC said, "The UK banking industry is looking at two-factor
authentication, and HSBC is part of those discussions - we have no
specific plans outside of these industry discussions at this
stage."
In October, Lloyds TSB announced one of the largest trials of
the technology conducted in the UK, with plans to issue 30,000
customers with keyring-sized devices that would give them secure
access to online accounts through a one-use pass code.
Two-factor authentication can also be achieved using a software
application. Software provider Meridea has devised a system that
uses software on a Java-enabled mobile phone to generate a
validation number for each transaction. Meridea said it is
straightforward to install, with the software delivered to mobile
handsets remotely.