Germany's fifth largest bank, LBBW Bank, Stuttgart, claims to have become the first German bank to entirely discard the practice of issuing lists of one-time passwords to be used by online banking customers.
Instead, LBBW has switched to security tokens, the DIGIPASS from VASCO Data Security International, Inc. (Nasdaq: VDSI) a leading token vendor with joint headquarters in Zurich and Oakbrook Terrace, Ill. Tokens are now used by all of LBBW's 200,000-plus retail users, instead of the widespread Transaction Account Number lists, better known as TAN lists, which banks mail out to their customers. Clients work their way down the list, striking off a password every time they bank online.
Since using tokens exclusively for secure authentication, Stephan Wegmann, the bank's project manager said, "We have had no cases of loss caused by online-attacks for one year."
Landesbank Baden-Württemberg, based in the state of Baden-Württemberg, goes by LBBW, and has $604 billion in assets. However, a proposed merger mooted with another German bank would give LBBW $1.2 trillion in assets.
LBBW and its retail arm BW-Bank said it has received widespread acclaim in Germany for its DIGIPASS-secured retail banking applications.