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    <p>My first reaction would be Digital Signatures - but they have a fatal flaw: they are digital data that could be compromised by a careless user.</p> <p>If that is a concern you can go for the process that South African banks use, a one-time password. This password is transferred to them via a means that is not involved in the transaction (in South Africa this is by SMS, which I strongly recommend). We first type in a username and password, and then get the OTP via SMS which we then need to type in for any transactions that lead to money leaving our accounts.</p> <p>Strong forms of security (in increasing effectiveness) include (I am no expert, but I do know a few):</p> <ul> <li>Knowledge (A password)</li> <li>Possession (A cell-phone SIM card that can receive SMSes, or a USB thumbdrive with a certificate)</li> <li>Location (A computer with a hardware-based certificate management system, CellID)</li> <li>Time (OTP expires, transaction must occur at specific time)</li> <li>Identity (A fingerprint reader - effectively a password - but insanely long)</li> <li>Uniqueness (A fibre-optic cable encoded in the polarization of the photons)</li> </ul> <p>From what I know if you have any three of those you can be comfortable with your security. Adding more increases security exponentially, but also increases the inconvenience factor. The banks use Knowledge, Possession and Time in South Africa - and phishing really doesn't work against South African banks.</p> <p>Hope this helped you out a little.</p>
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