Risk: Informational
During May 2006, HSBC will send 180,000 password authentication devices to its business customers. According to HSBC, this is as a result of a growing concern in the banking industry that the sophistication of cybercrime is continuing to grow.
Simon Wainwright, Head of Business Banking at HSBC, said: "[It] will enable us to stay one step ahead of the fraudsters. Our experience in other parts of the world shows that this kind of two factor authentication is an extremely useful weapon in the fight against internet crime and we would urge other banks in the UK to seriously consider following our lead."
Lloyds TSB recently issued 23,500 customers with a similar device that generates a new authentication code every 30 seconds. During its five month trial, no customers reported any fraudulent account activity, but Lloyds has yet to confirm if it will issue the devices to all of its customers.