Macquarie Bank has reported that over one million of its customers have enrolled in the Macquarie Authenticator app, a digital security tool launched in 2019. The app serves as an alternative to traditional SMS-based two-factor authentication (2FA), providing users with enhanced security features. This shift reflects a growing demand among Australian banking customers for more secure authentication methods.
The Macquarie Authenticator notifies users of any attempts to log into their accounts, make online payments, or change sensitive account details. Customers receive detailed information about these actions, including the amount involved, origin and destination accounts, and other relevant data such as time and location of the request. This transparency allows users to verify the legitimacy of requests in real-time.
Olivia McArdle, Head of Deposits and Payments at Macquarie Bank, stated: “We think the days of Australian banks relying solely on SMS to verify customer account activity are numbered. The vulnerabilities are clear and customers, who are seeing the risks themselves, are voting with their feet."
Since 2020, Macquarie has allowed customers to personalize their security settings using two modes: Enhanced Mode and Ultimate Mode. Enhanced Mode requires additional verification for attempted logins from untrusted devices and changes to sensitive details. Ultimate Mode extends this requirement to all login attempts regardless of device trust status.
McArdle further commented: “When 2FA was first adopted by Australian banks...the landscape has changed considerably since then." She noted that customer feedback indicates they feel more secure using Macquarie Authenticator compared to other banks' systems.
The app is part of a broader effort by Macquarie to combat scams and frauds. Additional measures include real-time payment protection and the Macquarie Password Monitor which alerts users if their credentials may be compromised.
Despite advancements in digital security tools like Macquarie Authenticator, traditional SMS-based 2FA remains vulnerable. Risks include impersonation scams where fraudsters request authorization codes under false pretenses or spoofing attacks involving fake websites designed to steal user information.
Macquarie advises caution when responding to SMS-based 2FA requests due to potential threats such as pop-up SMS messages that cannot be traced or phone porting scams that hijack phone numbers without consent.
This information is provided by the Macquarie Group as a general description only. It does not constitute financial advice or an offer for financial products or services.