In 2005, the FFIEC issued guidance entitled Authentication in an Internet Banking Environment.
This FFIEC guidance supplements the FDIC's supervisory expectations regarding customer authentication, layered security, and other controls in an increasingly hostile online environment.
The FDIC expects institutions to upgrade their controls for high-risk online transactions through:
- Yearly risk assessments;
- For consumer accounts, layered security controls;
- For business accounts, layered security controls consistent with the increased level of risk posed by business accounts; and
- More active consumer awareness and education efforts.
Layered security controls should include processes to detect and respond to suspicious or anomalous activity and, for business accounts, administrative controls.
Certain types of device identification and challenge questions should no longer be considered effective controls.
FDIC-Supervised Banks (Commercial and Savings)
Chief Executive Officer
Chief Information Security Officer
- FIL-103-2005, Authentication in an Internet Banking Environment, October 12, 2005
FFIEC Supplement to Authentication in an Internet Banking Environment - PDF (PDF Help)
Jeffrey Kopchik, Senior Policy Analyst, at firstname.lastname@example.org or (703) 254-0459
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC Financial Institution Letters may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).