Banks told to increase online security

The Federal Financial Institutions Examination Council has given the banking industry until the end of 2006 to implement a new security measures designed to protect online banking customers. Called a "two-factor authentication" system, this will require customers to enter their username, pin and a special passcode in order to login. The passcode can either be generated by a keychain-sized device that looks like a small calculator or with the use of scratch off cards.  This partly in response to the increase of phishing and pharming attacks, 85% of which target financial institutions.

But will this make a difference? It can stop some kinds of fraud, but experts say that this is not the perfect solution. Plus, it may deter customers from accessing their accounts online. Most people have more than one bank or financial institution they view online. When you have to keep track of a handful of passcode devices just to see your accounts, you may stop checking online. And this means that people would be less likely to catch someone misusing their account or other signs of identity theft.