The Metropolitan Bank & Trust Co. (Metrobank) has tapped the services of International Business Machines (IBM) to integrate and implement an advanced security solution for its Metrobankdirect, its Internet banking facility. The Two-Factor Authentication (2FA) is a security process by which the user provides a second means of identification in order to obtain system access.
New and changing risks in cyberspace such as identity theft, phishing, pharming, and increasing incidents of fraud have become a cause for concern for companies doing business in the Internet. Banks and financial institutions, in particular, are a common target and face the challenge of continuously looking for ways to safeguard customers’ information and electronic transactions.
“Our objective is to have the strongest level of security in online banking without having to complicate the sign-in and user authentication procedures that might drive online users away,” said Metrobank executive vice president Dennis Suico.
“Usage of our Metrobankdirect Internet banking facility has been gaining popularity among Metrobank clients. We want to maintain this good acceptance by making sure our clients can use our online facility with confidence,” Suico said. “Choosing the strongest user authentication and transaction authorization strategy is therefore very important.”
Before the security upgrade, Metrobankdirect uses single factor authentication whereby users are required to enter a customer ID and password to prove their real identity. 2FA will enhance the authentication process by requiring a second means of identification through a security token thereby protecting clients against evolving online banking threats. To date, it is the most suitable level of security in online banking while maintaining a simplified user sign-on procedure.
“With 2FA, we will strengthen the Bank’s compliance with BSP Circular 542 on Consumer Protection for Electronic Banking,” shared Suico. “But more importantly, it will increase the level of protection for our internet banking users.”
IBM Philippines country general manager James Velasquez said that online user authentication methods that depend on more than one factor are more secure and reliable. Account fraud and identity theft are frequently the result of exploitation of single-factor authentication.
2FA will reduce the window of opportunity of any fraudulent transactions, and reduce exposure to online fraud caused by offline phishing attacks and other offline/online credential stealing threats.