Ask HN: Does this exist; verify bank transactions via SMS? | Hacker News Reader

Ask HN: Does this exist; verify bank transactions via SMS?

6 pointspaul798616 comments

Last night I noticed someone fraudulently withdrew a ton of money from my bank account. Now Im left feeling very insecure and am looking for a bank that offers a SMS service that sends me text messages to approve transaction over a certain amount via "press 1," to authorize or call X number to report fraud.

I called many large US bank institutions but none offer this service. THough maybe I missed one and if not this needs to be made!

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In Australia some banks do this (to some extent). E.g. http://www.commbank.com.au/help/faq/netbank/security.aspx#wh...

Yeah, CommBank's NetCode SMS service is a good security feature (should in-fact be a 'standard' for all high-risk personal finance transactions).

CommBank's is a nice mechanism, and doesn't really slow the transaction down by more then 30 seconds or so. In fact, I'd like them to apply it to more of the operations I can perform; I'd be happier if every time I logged into internet banking, an SMS was sent containing a one time key.

Seriously this exist in Australia but not the US?

It's a great idea. I'm assuming there wouldn't be any latency issues (e.g. waiting for confirmation), but who knows how these withdrawals are reconciled. I think even JUST an SMS alerting you to the transaction would be useful as a v1 (with a fraud # to call). I wonder what the "sales" cycles would be like with the bank (and that's the problem here... for a company to offer this service would provide very little value... the banks could easily build it themselves... and who knows what kind of laws you would need to comply with)

All seem to offer text message alerts after the fact the money has been withdrawn. Which is asinine, as that money is lost, tons of resources have to go into researching and getting money back, when this could have been easily avoided using SMS approval.

You have to also take into account people's time lost and inconvenienced in scenarios where SMS fails. For example, if the user doesn't have their phone on them but needs the money, then what? Or when the SMS message doesn't get through for whatever reason. Or where there is a no signal.

In South Africa, ABSA (Barclays owned), First National Bank and Nedbank use this.

You get a text when logging on, on creating a new beneficiary, and again on paying a new beneficiary for the first time.

Verifications are randomized strings of 8 characters.

ABSA's SMS verification system is flawed though. Their internal network allows _anyone_ on site to change a client's telephone number, which allows employees to effectively steal, whilst keeping their security flag flying.

If you're comfortable with sharing your data with mint, they offer text alerts for unusual spending / custom triggers you set. http://www.mint.com/ That won't prevent someone from accessing it though. I suppose you could e-mail banksimple and see if they plan on implementing it when they launch: https://banksimple.net/faq/

Chase offers SMS notifications for any cash withdrawals (and I believe spending) exceeding a certain amount you can configure, though it's just a "heads up" and not anything you can authorize over the text.

I can't recommend them in good faith, because there are other issues I have with the bank, though nothing involving security.

How did they withdraw the money? Did they have your checking account and bank routing numbers?

Its there in India too. Any transfer made via internet banking has to be authorized first via a code sent to my mobile. Pretty neat.

The ING has that option in The Netherlands. I'm not sure in the US though.

Paul, could you drop me a line? We have interesting product for you.

in china, most bank dont support to charge under linux so i have consider this for linux user :]

comm bank down under

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