SMS-based two factor authentication has been touted as a way of improving online banking security but Westpac's head of information security disagrees.
Australia's central bank has criticised the nation's four largest commercial banks for shirking on investments in payment systems technology, resulting in a lack of innovation and neglect of systems like EFTPOS.
Westpac Bank is set to improve its security credentials and tackle card swiping scams by issuing credit card holders with chip-embedded smartcards.
Credit card users will be given the option of entering a PIN as an alternative to signing their name to authenticate a transaction under a banking industry initiative scheduled to start today.
Government attempts to build the payments infrastructure required for the fledgling welfare access card would cost over AU$500 million and represents a "humongous" IT project risk, according to a group of banks and e-payment providers.
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