Supplied by Vasco Data Security Asia Pacific, the Singapore based subsidiary of Vasco Data Security NV/SA, a Belgian based company, the keychain-like device generates a random 6-digit password for users to log onto their Internet banking accounts. The password can only be used once and is only valid for one minute, after which a different set of numbers will be generated.
This security measure comes on top of the fixed user ID and password that customers are required to fill in, said Qasif Shahid, ABM Amro's head of alternative distribution and e-channels for its consumer banking operations.
Hardware-based security mechanisms such as tokens and smart cards have already been adopted by other banks in Singapore but their use have typically been limited to corporate customers. ABN Amro claims it is one of the first banks to provide this complimentary feature for both corporate and retail banking customers.
ABN-Amro's move comes amid growing concerns over the security of online transactions in light of recurring "phishing scams" and Trojans which often prey on Internet banking passwords.
Last week, security experts uncovered a malicious pop-program which attempts to steal passwords from the users of nearly 50 banking sites, including Asian ones like Hong Kong's Da Shing Bank and Bendigo Bank in Australia.
Singapore-based DBS Bank also fell victim to a phishing attempt last December when its Web site in Hong Kong was spoofed by hackers in a bid to con customer information.
Through the use of hardware security tokens, such threats can be minimised, stressed Shahid.
"It doesn't matter if your computer is hacked by a Trojan horse, or if your computer is hacked with a key-logger program because the password that you are putting in is a one-time password," he said. "The life expectancy is so short that nobody can do anything with it."
The token will be launched in the republic in two weeks but there are no plans to implement the measure across the bank's other operations in Asia-Pacific, added Andrew Liew, executive director of consumer banking.
ABN-Amro has offices in 10 other Asian countries including Australia, New Zealand, China, Hong Kong, Taiwan and Indonesia.
