Wall Street Journal questions TreasuryDirect security
Monday, July 10th, 2006
Categorized as: Treasury Direct
The article refers to our March 18 article TreasuryDirect refuses to confirm transactions, and quotes Dan Sadler, one our readers who commented on that article.
Laise reports, “TreasuryDirect is dealing with security issues at a time with the financial services industry is struggling to fight a wave of online fraud. ‘There’s been a tremendous increase in the theft of information electronically,’ says Avivah Litan, an analyst at research and consulting firm Gartner Inc.”
Later in the article, Litan is quoted saying TreasuryDirect’s display of full bank account and Social Security numbers on some screens is an “antiquated security paractice.”
Laise also reports that last year the Chairman of the House Government Reform Committee, Tom Davis, (R. Va) wrote VanZeck, Commissioner of the Public Debt, about the inability to open TreasuryDirect accounts except by using the Internet. Security experts say an extra step, such as paperwork or a phone call, should be required to link a bank account to an investment account.
Laise also spoke with Stephen Meyerhardt, a spokesperson for the Treasury, who says that TreasuryDirect hasn’t experienced any security breaches. Meyerhardt also says the security of TreasuryDirect is constantly being improved and by next year will include masking of sensitive numbers, password entry on a virtual keyboard, and an extra layer of authentication in the login process.