January 13, 2006 — 11:00am EST (1 hour)
Michael Friedman, Director, Emerging Technologies Advisory Service

Online consumers bear the brunt of online fraud.  Consumer Reports estimates

that of the online threats facing consumers in today’s market, phishing and

spyware represent over $3.6 billion in total damage, and 2004 statistics

from the Department of Justice reveal the average victim of ID fraud spends

sixty hours repairing the damage.  While some of this fraud can be prevented

by consumer action, many of the causes of identity theft are well beyond the

average consumer’s control.  Consumers are by in large unable to recognize

and prevent the most insidious versions of online fraud.  Both phishing and

spyware are identified as root causes of identity theft and credit card

fraud, and both of these fraud perpetrating mechanisms are getting more

sophisticated in nature as fast as consumers become aware of them.


In an effort to secure the online channel and reduce both institutional and

consumer exposure to identity theft, the FFIEC released updated 2005

guidance regarding online authorization.  The updated recommendations point

to multifactor authorization methods as the primary defense. 


In it’s latest teleconference, Mercator Advisory Group’s Michael Friedman, Director for the Emerging Technologies Advisory Service, discusses the impact of

multi-factor authentication including the means, the benefits and the

problems associated with this defensive mechanism.  The teleconference will

focus on industry best practices and the additional measures that

institutions need to take in order to fortify their online channels from