New Zealand bank ASB is to launch authentication tokens that generate random six digit figures to enable greater security for online transactions.
The Netcode Token can be attached to a keyring for ease of portability by the customer. The customer enters the randomly-generated number provided by the token when logging on to ASB’s Internet banking platform, alongside their existing logon and password.
A similar system already exists whereby ASB customers can receive the identification number by SMS to their mobile phones, however the bank claims the hardware-based system will be more useful as it evades problems of phone coverage and reception. ASB will not allow transfer of funds greater than NZ$2,500 to third party accounts without the code being used.
In contrast, HSBC has unveiled plans to distribute similar tokens to its 17,000-strong customer base in New Zealand free of charge. Customers will be expected to use the two-factor authentication for all online banking visits in New Zealand.