Scammers have found a way around new token-based authentication systems that have been adopted by some banks.Over the past few weeks, approximately 35 phishing websites have been set up that use the new attack. They attempt to trick users into divulging the temporary passwords created by the security token devices used by banks such as Citigroup, said Rich Miller, an analyst with Internet research company Netcraft.Phishers have only recently begun looking for ways around token authentication, using what is known as a “man-in-the-middle” attack, Miller said. “These attacks are worrisome because they took advantage, fairly early on, of a system that’s seen as enhancing security for banking customers,” he said.Token devices are used to create a temporary second password for online banking customers. These passwords are valid for a very short period of time and can be used only once, making it impossible for attackers to steal them for later use. U.S. banks have been offering the tokens to users in an effort to comply with federal guidelines that call for stronger, two-factor authentication for online transactions by year’s end. Security experts had predicted that phishers would eventually use a man-in-the-middle attack to circumvent token-based authentication, but these recent attacks mark the first time they have actually done so, Miller said.Under an ongoing attack against Citibank customers, phishers have set up a fake website where victims are tricked into entering their passwords. The fake site instantly forwards the password information to Citibank’s real website, allowing the criminals to sign on before the victim. With a total of 35 such phishing sites now spotted, it seems that the attack is becoming widespread, Miller said. “This is getting organized,” he said. “It is not just an isolated incident of somebody coming up with a proof of concept or an exploit that’s unique to them.”Many of the 35 phishing sites found by Netcraft have now been shut down, although some are still operative, Miller said.Although these new phishing techniques show that no technique is impervious to attack, token-based two-factor authentication remains a useful tool against malicious software such as Trojan horse programs, said Johannes Ullrich, chief research officer at the SANS Institute.Ullrich also noted that these attacks rely on victims who will enter sensitive information into an untrusted website, a type of victim that is becoming harder to find as users clue into the phishing phenomenon.“The real problem is not the phishing sites; it’s the Trojans and keyloggers,” he said, adding that “they’ll have a harder time working around the two-factor authentication.”-Robert McMillan, IDG News Service (San Francisco Bureau) Check out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content BrandPost Are tech layoffs inevitable, or can your company avoid them? Despite tech industry layoffs, one ITSM company remains committed to growth and expansion of internal teams. The company’s successful endeavor is largely credited to one difference between TOPdesk and other tech organizations. By TOPdesk Mar 30, 2023 6 mins IT Leadership Analysis CIOs must evolve to stave off existential threat to their role With LOB leaders learning tech faster than CIOs gain business-savvy, IT leaders must strengthen advisory skills, build relationships, and embrace strategic transformation before losing out to business counterparts. By Yashvendra Singh Mar 30, 2023 10 mins Roles Opinion 5 ways AI will transform CRM Recent announcements by Microsoft and Salesforce on how they’re ramping up integration of AI tools into their software offerings mark the start of a revolution in the CRM marketplace. By Martin De Saulles Mar 30, 2023 4 mins Channel Sales CRM Systems Artificial Intelligence Interview From CIO to CX SVP, Cisco’s Jacqueline Guichelaar takes a road less travelled By David Binning Mar 29, 2023 7 mins Careers IT Leadership Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe