Loading...

The 5 Basic (but Important) Questions Banks Need Answered Regarding FFIEC Regulatory Compliance

Published: November 14, 2011 by Chris Ryan

This first question in our five-part series on the FFIEC guidance and what it means Internet banking.  Check back each day this week for more Q&A on what you need to know and how to prepare for the January 2012 deadline.

Question: What does “layered security” actually mean?  

“Layered” security refers to the arrangement of fraud tools in a sequential fashion. A layered approach starts with the most simple, benign and unobtrusive methods of authentication and progresses toward more stringent controls as the activity unfolds and the risk increases.

Consider a customer who logs onto an on-line banking session to execute a wire transfer of funds to another account. The layers of security applied to this activity might resemble:

1.       Layer One- Account log-in. Security = valid ID and Password must be provided

2.       Layer Two- Wire transfer request. Security= IP verification/confirmation that this PC has been used to access this account previously.

3.       Layer Three- Destination Account provided that has not been used to receive wire transfer funds in the past. Security= Knowledge Based Authentication

Layered security provides an organization with the ability to handle simple customer requests with minimal security, and to strengthen security as risks dictate.  A layered approach enables the vast majority of low risk transactions to be completed without unnecessary interference while the high-risk transactions are sufficiently verified.

_____________

Look for part two of our five-part series tomorrow. 

Related Posts

For fintechs who were already challenging existing business models, COVID-19 suddenly accelerated financial services innovation into overdrive.

Published: October 28, 2020 by Jesse Hoggard

The pressure to innovate amid technological progress poses an opportunity for us all to rethink the work we do and the way we do it. Are you ready?

Published: September 19, 2019 by Laura Burrows

Opening a new consumer checking account in the 21st century should be simple and easy to understand as a...

Published: December 12, 2014 by Guest Contributor

Subscription title for insights blog

Description for the insights blog here

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Categories title

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.

Subscription title 2

Description here
Subscribe Now

Text legacy

Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source.

recent post

Learn More Image