SAN JOSE, Calif. – Technology Credit Union has completedconverting its entire base of active online bankers to atwo-factor, two-way authentication system designed to assure thetech-savvy membership of their online security while meeting newfederal guidelines. The $1.1 billion CU is one of the firstfinancial institutions to use PassMark Security's login system.About 30,000 of the CU's 75,000 members use its online channel andwere moved onto the new system as they began logging in on andafter Nov. 16. That was only about a month after the FederalFinancial Institutions Examination Council issued its newguidelines on online authentication. While the guidance focused onrisk management as a whole and didn't dictate any particular path,the message was clear: Passwords and PINs are insufficient as thesole means of security and the FFIEC gave the nation's provider ofonline financial services until the end of 2006 to strengthen thedefenses. Tech CU didn't wait. It turned to Silicon Valley securityspecialist PassMark for its two-factor authentication andanti-fraud filtering system, which works in part by remotelyidentifying individual computers as well as bolstering themember-facing login routine. Tech CU began the process by requiringall users to convert from the old four-digit password and member IDto alphanumeric user names and passwords. It accompanied theswitchover with an active marketing campaign that included reminderscreens and customizing instructional information as the processmoved along. Each member also was given a secret PassMark, a smallauthentication image or phrase created by the member that then isshown at each login. The credit union says that assures membersthat they have not reached a “spoof” site and are at Tech CU'slegitimate Web site. They also don't have to carry tokens cards orreaders. The reaction has been good, the CU says. In an onlinesurvey, it asked members how they rated “the approach Tech CU istaking to improve online security?” Fifty-three percent of therespondents said “excellent” and 39% said “good,” the credit unionsays. “We are acutely aware of the large number of incidences ofonline fraud and identity theft and the inadequacy of passwordprotection for online transactions,” says Mike Luckin, senior vicepresident of delivery systems for Tech CU (www.techcu.com.) “That'swhy we chose to implement the program instead of waiting to learnfrom other institutions,” he says. -

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