Bank with the Commonwealth? You will now need a prompt to log in

Australia’s largest bank is strengthening its security by introducing a multi-factor authentication system requiring customers to approve a prompt in the app to log in.

Multi-factor identification is being introduced for the CommBank’s NetBank.

CBA has upped its security measures for digital banking and will soon require customers to receive a prompt via the bank’s mobile app to be able to log on via a computer or laptop.

The big four bank says that multi-factor authentication is one of the “most effective defences” for cybercrime including online banking fraud and is planning a rollout to all of its NetBank customers.

CBA has about 17 million customers and more than 7.5 million app users, and the bank believes the security measures will save scores of customers whose banking passwords have been fleeced by criminals. It forms part of a $450m commitment to improving its defences against cyber crime and fraud.

Meg Bonighton, the bank’s executive general manager of digital, told The Australian that while multi-factor authentication would not end cybercrime, it would make things harder for criminals to access customer accounts.

“Sophisticated cybercriminals will continue to adapt their techniques and CommBank has over 4000 people dedicated to fighting financial crime,” she said. “Multi-factor authentication is another defence we’ve integrated into our arsenal to help protect customers from fraud, scams, cyber and financial crime.”

CBA executive general manger of digital Meg Bonighton.

Users whose passwords have been fleeced and receive a prompt to log in when criminals are attempting to access their accounts will be required to change their password.

Multi-factor authentication is used by several Australian banks including Bank of Queensland when its customers attempt to make a payment to someone new or someone they do not often interact with.

Other banks including HSBC use the technology during online transactions when international payments or transfers are being made. CBA has begun piloting the new multi-factor system on the accounts of its staff and is set to begin a wider rollout next month.

Ms Bonighton said the bank would roll it out to customers in order of those who use its mobile banking app the most. The bank expects to have all customers who use its app using the feature by about June.

But customers who were yet to register CBA’s mobile app would not receive the update.

“If you’re not a user of the app, we won’t put the multi-factor authentication in place,” Ms Boninghton said, adding that CBA would look at how it could improve the cyber hygiene of some of its older customers who might not yet use the app.

The bank uses a different form of identification for users to log on to its mobile app which includes biometric features and some behavioural tracking.

CBA’s multi-factor authentication measures arrive after a major update late last year which allows customers to remove their credit cards and debit cards from the digital wallets of smart phones, smartwatches, iPads and tablets via the mobile app.

That feature had become increasingly important, particularly if phone-snatching groups were linked to cyber criminals.