Scientists at IBM have developed a new mobile authentication security technology derived from the radio standard called 'near-field communication (NFC)'.
The new two-factor authentication technology offers additional security during transactions, including online banking and digital signatures, via an NFC-enabled mobile device and a contactless smartcard.
IBM Research mobile security scientist Diego Ortiz-Yepes said: "Our two-factor authentication technology based on the Advanced Encryption Standard provides a robust security solution with no learning curve."
According to scientists, the new technology works after a user holds the contactless smartcard adjacent to the NFC reader of the mobile device and after entering their PIN, a one-time code is generated by the card and sent to the server via the mobile device.
Based on end-to-end encryption between the smartcard and the server, the new technology uses the National Institute of Standards & Technology (NIST) Advanced Encryption Standard (AES) scheme.
A new research from ABI Research reveals that number of NFC devices operational will surpass 500 million by next year, while about one billion mobile phone users will use their devices for carrying out banking transactions by 2017.