SOURCE: PhoneFactor


May 30, 2012 09:30 ET

United Bank & Trust Deploys PhoneFactor to Thwart Online Banking Fraud in Real-Time

PhoneFactor Allows Rapid Approval of Legitimate Transactions While Preventing Fraudulent Transactions From Ever Being Presented to the Bank for Processing

OVERLAND PARK, KS--(Marketwire - May 30, 2012) - PhoneFactor, the leading global provider of out-of-band multi-factor authentication, today announced that United Bank & Trust, headquartered in Ann Arbor, Michigan, has expanded their use of PhoneFactor to empower its business customers to stop online banking fraud in real-time.

With PhoneFactor, when an ACH or wire transfer is submitted through United Bank & Trust's online portal, an automated phone call is placed to the customer. The customer answers the call and listens to the transaction details. If the transaction is legitimate, the customer enters their PIN into the phone keypad. Within seconds, the transaction is submitted to the bank for processing. If the transaction is fraudulent, the customer blocks the transaction instead, triggering an instant notification to United Bank & Trust.

The bank's customers are very pleased with the new solution. "I am impressed by how easy the system is to use," notes Mike Klein, President and COO of Online Tech. "There is a level of comfort in knowing that there is an added layer of security before any money is moved out of my accounts."

Because the transaction is verified through an out-of-band telephone call, it protects against ZeuS and other malware targeting online banking sessions. These attacks easily defeat one-time password security tokens, challenge questions, and device IDs.

"With other financial institutions hit hard by online banking fraud, we wanted to ensure that our customers were protected from even the most sophisticated threats," explains Marsha Whitehouse, VP of Treasury Management. "We chose to implement PhoneFactor because it keeps fraudulent transactions from making it through the front door so to speak. Only legitimate transactions approved by our customers make it to our processing system."

Implementing the PhoneFactor Universal Banking Gateway (UBG) was a logical choice for United Bank & Trust. The UBG enabled the bank to add transaction verification to their online banking platform, powered by Fiserv, without requiring any custom coding. United Bank & Trust was committed to out-of-band transaction verification as the most secure option. Not only is it recommended by the FFIEC Authentication Guidance, but it has proven more effective than one-time password tokens and other security measures at defending against today's most pervasive threats. And because they had been using PhoneFactor for years to secure employee remote access, they knew that their users would readily embrace it.

"Most anti-fraud measures flag suspicious transactions for later review -- either holding the transaction until it can be verified or attempting to verify the transaction after it has been processed," said Steve Dispensa, CTO of PhoneFactor. "By providing an easy, automated method to verify transactions as they occur, PhoneFactor enables financial institutions like United Bank & Trust to stop online banking fraud without disrupting their customers' business transactions."

About PhoneFactor
PhoneFactor is a leading provider of multi-factor authentication. The company's award-winning platform uses any phone as a second form of authentication. PhoneFactor's out-of-band architecture and real-time fraud alerts provide strong security for healthcare, enterprise, banking, and website applications. It is easy and cost effective to set up and deploy to large numbers of geographically diverse users. Learn more at or follow PhoneFactor on twitter @phonefactor.

About United Bank & Trust
United Bank & Trust is a community-based financial services company located in Washtenaw, Lenawee, Livingston and Monroe Counties in Michigan. We provide financial solutions to our clients based on their unique circumstances and needs, through a line of business delivery systems that includes banking, mortgage, structured finance and wealth management. For more information, visit the Company's website at

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