Bank Of America To Install Encryption Software

Bank of America has tapped VeriSign Inc.'s Unified Authentication encryption software to safeguard applications used by business customers to access online banking services. The system employs two-factor authentication, a method that requires two forms of ID, such as a password, token, or smart card, in order to gain access to online services.

Earlier this month, a businessman sued Bank of America, claiming that $90,000 was stolen from his account last year and diverted to a bank in Latvia. He claims the bank was negligent in not alerting him about the existence of "coreflood," a form of Trojan-horse software that was found to have infected his computer.

Several months after the alleged theft, the bank sent a letter to users of Bank of America Direct, its online business-banking portal, alerting them to a new "dual administration" feature requiring the approval of at least two individuals to execute a funds transfer. The letter also recommended that clients install antivirus software.