A bank just sent one of my listeners a special card. It generates a six-digit number at the push of a button. That number is used to access online banking features.

He thought it was an impressive security feature. But he wasn’t sure how it worked.

He’s right; this is impressive. And your bank may offer it soon.

How it works

Your user name and password are intended to keep criminals out. Of course, strong passwords are important. Click here to read this tip that can help. But passwords can be broken or stolen.

Once you log in, some banks give you total access. So, there is only a single barrier to your accounts. If criminals guess or steal your password, your money is gone.

So, many banks are implementing two-factor authentication. This adds a second barrier. There are a number of ways to do this. Some are better than others.

Specialty smart cards

The number generating card is terrific. To my knowledge, only Bank of America is offering this service. It’s called SafePass. The six-digit code isn’t required to log in. But some online banking features (like money transfers and bill pay) are locked. The SafePass code unlocks them.