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 feature LexisNexis rises to the generative AI challenge With generative AI, the legal information services giant faces its most formidable disruptor yet. That’s why CTO Jeff Reihl is embracing and enhancing the technology swiftly to keep in front of the competition. By Paula Rooney Dec 01, 2023 6 mins Generative AI Generative AI Generative AI feature 10 business intelligence certifications and certificates to advance your BI career From BI analysts and BI developers to BI architects and BI directors, business intelligence pros are in high demand. Here are the certifications and certificates that can give your career an edge. By Thor Olavsrud Dec 01, 2023 8 mins Certifications Business Intelligence IT Skills brandpost Sponsored by Huawei Beyond gigabit: the need for 10 Gbps in business networks Interview with Liu Jianning, Vice President of Huawei's Data Communication Marketing & Solutions Sales Dept By CIO Online Staff Nov 30, 2023 9 mins Cloud Architecture Networking brandpost Sponsored by SAP Generative AI’s ‘show me the money’ moment We’re past the hype and slick gen AI sales pitches. Business leaders want results. By Julia White Nov 30, 2023 5 mins Artificial Intelligence 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