Researchers have come up with a small device called 'security-on-a-stick' to protect consumers and banks from hacker attacks. Resembling a memory stick with an integrated display, a prototype USB device developed at IBM's Zurich Research Lab brings a new level of security to online banking for consumers. The Zone Trusted Information Channel (ZTIC) plugs into the USB port of any computer and creates a direct, secure channel to a bank's online transaction server, bypassing the PC that could be infected by malware or be susceptible to hacker attacks.

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The consumer can use the security stick to log on and validate all transactions via a display, while the USB device is securely connected to the server, safeguarding against attacks that can manipulate dar in the background, while hidden from the consumer and the bank. The USB device adds an extra level of security to the existing authentication solutions provided by smart card, PIN or one-time validation code, in order to counter the newest and most highly manipulative security threats.

After i,nitiallab prototypes had been released by the researchers, the first pilot devices have now been industrially manufactured and are ready for trials. The company also says that no change is required in either the server software or the software running on the client's Pc. It runs on all major home computing operating systems.