Authentication Fraud is One of the Top Threats of the New Year

As 2009 comes to a close, the industry begins to look back and take inventory of the most prominent breaches, hacks, and security compromises that were endured throughout the past 12 months. With this assessment, experts can attempt to frontload preventative measures for 2010.

Bank Info Security recently released its top eight security threats for the coming year and has placed authentication fraud prominently at number two on its list. Disturbingly, hackers are proving that they are learning to dodge even the most personalized of standard authentication measures.

Gartner’s Avivah Litan details “man-in-the-browser” attacks, which circumvent one-time password (OTP) authentication like those formerly used by AOL. OTP authentication requires a physical key to be owned by the consumer and used to generate single-use passwords that expire in a matter of seconds. Hackers have also concocted new means of fraudulent call forwarding that dupe phone, text message, and voice authentication measures. Both of these measures of defense are widely employed by banks and financial institutions to protect their most valuable consumer and business accounts.

But, even more disturbing is that hackers aren’t stopping there. According to the article, two-factor authentication systems are already coming under early fire, with more intense hacking attempts predicted in 2010. There’s no doubt that the most up-to-date, comprehensive fraud prevention services will be essential for the protection of businesses and financial institutions—especially in the new year.

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