Optical transaction signing device limits ebanking fraud

SafeNet announced the eToken 3500, an electronic signing and strong authentication token-based device that will enable financial services organizations to achieve risk mitigation and usability when securing ebanking applications.

The device uses an optical sensor to read financial transaction data from a Web browser, generating a unique electronic signature that validates each transaction, reducing threats such as Man-in-the-Browser (MitB) and Man-in-the-Middle (MitM), in which hackers hijack legitimate user identities during a transaction and redirect funds.

Additionally, the optical features of the device scan the transaction data automatically, eliminating the need for manual inputs, which simplify the electronic signing process for the user while reducing errors.

Financial institutions have to manage heavy volumes of high-risk transactions on a daily basis. The rising tide of cyber threats, as well as increased regulatory pressures, has necessitated a new approach to online transaction protection. Additional validation, to ensure that each transaction is authorized by a legitimate customer, can contribute significantly to reducing online banking fraud.

By combining secure electronic transaction signing with one-time password (OTP) strong authentication, the eToken 3500 eliminates the risk of transaction tampering, as well as forgotten, stolen, or hacked passwords, and mitigates the risk of identity theft. It also helps organizations comply with privacy and data protection regulations.

“Forward-thinking financial services institutions need to approach authentication in a way that goes beyond simply verifying the identity of the user, which can be faked. To combat fraud and manage risk, customers need transaction protection and signing solutions that ensure the transaction itself is validated,” said Andrew Young, vice president of Authentication, SafeNet. “SafeNet’s portfolio of identity and transaction solutions, including the eToken 3500, is purpose-built to address the unique risk requirements of financial services, delivering the appropriate levels of protection during the transaction lifecycle without impeding the customer experience.”