BankWest Business today announced the introduction of a new security system for its online business banking customers. In an industry first, BankWest is introducing the free security token system for all users of its Online Business Banking system, ranging from sole operators to large corporations.
"We have decided to pro-actively introduce state of the art security measures to protect all our Online Business Banking customers, even though to date, we've had no reported cases of online fraud," said Paul Clark, Chief Executive Officer, BankWest Corporate and Business Banking
"More and more of our business customers are choosing online banking - often for large transactions - and we want them to have confidence in that process. Online banking is fast, convenient and cheap, and it allows customers to do business when it suits them. Because we are introducing the new system across the board, tokens are being issued free of charge to all existing Online Business Banking customers."
Mr Clark added that these new security measures are part of a major upgrade to BankWest's online business banking facilities, which will be phased in over coming months and will include increased functionality.
By the end of the year, all business customers will be issued with security tokens, which generate a new, random, six-digit code every 60 seconds. Each six-digit code can be used only once, thus reducing the likelihood of losses due to fraud.
Users enter their personal four-digit PIN followed by the six-digit code when logging on and again when authorising payments. This method is known as a second-factor authorisation (2FA) as it includes a second security code from an alternative source.
BankWest Business's new 2FA system replaces the current two-password system (one for logging on and one for authorising transactions).
The tokens are robust, waterproof, and small enough to fit on a key ring, with a guaranteed minimum life of four years. Because the tokens generate their own codes, there is no need to rely on another communication medium, such as the mobile telephone network for SMS authorisations.
