Updating our post from April, Fidelity Hints at New Mobile Verification Security, the official security enhancement is going to be two-factor authentication.
A lot of services offer two-factor authentication as an additional security measure. Everyone from Google to Paypal and Bank of America make it available to customers.
The brokerage industry though, for whatever reason, has been slow to join the bandwagon. It is fantastic to see Fidelity (read our review) taking this step for its 15 million customers.
Without digging to verify, I do not believe any other online broker offers two-factor authentication at this time, at least in the industry standard format Fidelity is following. ETRADE has offered a Digital Security ID for several years, and Interactive Brokers offers a special security card, but both can be cumbersome to use.
Two-factor authentication in the manor Fidelity is implementing is the easiest and quickest for customers to adopt.
Two-factor authentication is an extra step during login that requires the customer to input a security code texted to their cell phone. It is a simple way to ensure no one is gaining access that shouldn’t be.
The email was titled, “Important Security Update”. Screenshot at the bottom.
Introducing two-factor authentication for stronger account protection
In the coming months, we will begin rollout of a new security feature: two-factor authentication. This will help us to better protect your account and personal information by requiring a security code in addition to your username and password.
Two-factor authentication is a simple, three-step process:
Get Code 1. GET A CODE.
Enter Code 2. ENTER THE CODE.
Your Way 3. BE ON YOUR WAY.
To implement this feature, we need your latest contact information. Please log in to Fidelity.com and go to the Personal Information page in your Profile. Then verify that your mobile phone number and other contact details are up to date.