Available in the US from Q2 2005, the new authentication system uses a token-based security device that provides customers with a random, six-digit code that changes every 60 seconds. This code is combined with a user ID and password to access E*Trade accounts, preventing unauthorized access to personal financial information.
In addition to the best-in-class security standards we maintain on E*Trade’s own host servers and systems, we are now making available to retail customers an additional and voluntary layer of password security they can deploy on their own computers to address any password access or control concerns that they may have, said Lou Klobuchar, president, E*Trade Financial Services.
The move complies with an announcement made by The Federal Deposit Insurance Corporation in December that encouraged US banks to replace single password-based ID with a two-factor authentication system in order to deter account ID theft.
The Digital Security ID is free to customers with $50,000 or more in combined E*Trade account assets.
