Gartner Research

State of the Art for Online Consumer Authentication

Published: 05 May 2006

ID: G00139254

Analyst(s): Ray Wagner, Avivah Litan , Jay Heiser , Ant Allan, Alistair Newton


Banks must move beyond simple passwords for online consumer authentication: They are no longer adequate for Internet banking. Banks need to evaluate a variety of methods to determine which provides "strong enough" authentication and better suits their customers and retail banking service offerings.

Table Of Contents
  • Overview
  • Predictions
  • Knowledge-Based Authentication Methods
    • Simple Passwords
    • Virtual Keypads
    • Improved Password Methods
    • Knowledge-Based Authentication
  • Simple Token-Based Authentication Methods
    • Transaction Number Lists
    • Grid Cards
  • Software-Based Authentication Methods
    • PKI Credentials
  • Out-of-Band Authentication Methods
    • Short Message Service OTPs or TANs
    • OOB Authentication via Voice Telephony
  • Sophisticated Token-Based Authentication Methods
    • OTP Tokens
    • Smart Cards With Handheld Readers
    • PC-Connected Smart Tokens
  • Additional Safeguards That Improve Confidence in User Authentication Decisions
    • Customer Device Identification
    • Transaction Anomaly Detection
  • Emerging Methods
    • Biometric Authentication
  • Consumer Authentication Methods Compared

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