SECURITY SYSTEM IN ONLINE BANKING:

Now a day’s most of the financial instutions uses the two famous strategy for online banking:
1: The PIN/TAN System: Here the PIN represents the Password and the TAN represents the one time password to authenticate the transactions. These TANs can be distributed in different ways to the different users.one of the method is to send a list of TANs to the customer by postal letter. Another secure way of using TANs is to generate the TANS by need using a security token. These token generated TANs depend on the time and a unique secret, stored in the security token.This is called two-factor authentication or 2FA. Generally PIN/TAN is done via a web browser by using SSL secured connections.
2: Signature Based System: In signature based system all transactions are signed and encrypted digitally. The Keys for the signature generation and encryption can be stored on any memory medium, on the basis of concrete implementation.