Beyond SMS: TOTP Tokens Are the New Gold Standard in CU Security

Protecting your members' assets and data is a responsibility that never sleeps.

You’ve implemented two-factor authentication (2FA) in your digital banking, which has long been the industry standard. But in today's rapidly evolving threat landscape, it's critical to ask: Is your current 2FA strong enough?

For years, 2FA has relied on sending a one-time code via SMS text message or email. While better than nothing, this method is increasingly being targeted by sophisticated fraudsters. It's time to look beyond the standard and adopt a truly robust security measure that protects your members and your reputation.

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The Cracks in the Armor: The Growing Vulnerability of Email and SMS-Based 2FA

The convenience of sending a code to a member's phone or email address is undeniable, but its security is fundamentally flawed. The primary weakness lies in its vulnerability to SIM-swapping attacks.

A SIM swap occurs when a fraudster contacts a member's mobile carrier, impersonates them, and convinces the carrier to transfer the member's phone number to a new SIM card in their possession. Once they control the phone number, they can initiate a password reset for the member's online banking, receive the SMS 2FA code on their own device, and gain full access to the account.

Beyond this critical vulnerability, SMS authentication also suffers from:

• Network Dependency: Codes can be delayed or fail to arrive due to poor cell service.
• Lack of Encryption: SMS messages are not end-to-end encrypted, making them susceptible to interception.

Relying on this outdated method is a significant risk, potentially leading to financial loss, a damaged reputation, and an erosion of the member trust you've worked so hard to build.

The New Gold Standard: Time-Based One-Time Passwords (TOTP)

Enter the Time-Based One-Time Password, or TOTP. Instead of sending a code over a vulnerable network, TOTP uses an algorithm to generate a unique, time-sensitive code directly on the member's trusted device (usually via an authenticator app).

Here’s how it works:

1. During a one-time setup, the credit union's server and the member's authenticator app establish a shared secret key.
   The app then uses an algorithm, typically based on the shared key and the current time, to generate a new 6-digit code every 30-60 seconds.
2. The formula is often represented as TOTP=H(K, T), where 'K' is the shared secret key, 'T' is the current time step, and 'H' is a cryptographic hash function.
3. Because the code is generated locally on the device and changes constantly, it is immune to SIM-swapping and network interception. It even works when the member's device is offline or has no cell service.

This is the same secure technology used by leading technology companies and cybersecurity experts worldwide to protect their most sensitive accounts.

The FLEX Advantage: Security and Simplicity Integrated into Mobicint™

Understanding a technology is one thing; implementing it effectively is another.

At FLEX, we have integrated TOTP authentication directly into the mobicint™ digital banking platform with a dual focus on impenetrable security and a seamless member experience.

For Your Members: Security That Feels Effortless.

We know that the best security is the kind that members will actually use. The setup process is simple and familiar. Members can use their preferred, industry-standard authenticator apps like Google Authenticator, Microsoft Authenticator, Authy, etc. There are no proprietary apps to download. It’s a one-time setup that provides lasting peace of mind, empowering them with control over their account security.

For Your Credit Union: A Strategic Security Upgrade Integrating

mobicint™ with TOTP support isn't just a new feature; it's a strategic advantage that delivers tangible benefits:

• Drastically Reduce Fraud: Directly mitigate the risk of account takeovers originating from SIM-swapping attacks.
• Build Lasting Member Trust: Demonstrate a commitment to security by offering the same advanced protection members expect from major tech giants.
• Lower Operational Burden: Reduce the number of fraud claims and high-cost support calls related to account security, freeing up your team to focus on serving members.
• Future-Proof Your Platform: The digital landscape will only grow more complex. By adopting a modern authentication standard, you position your credit union as a forward-thinking institution prepared for the threats of tomorrow.

Don't Settle for "Good Enough" Security

Your members deserve a digital banking experience that is not only convenient but also uncompromisingly secure. Relying on outdated SMS codes in 2025 is a risk that is no longer necessary. By offering TOTP token support through mobicint™, you can deliver on your promise to protect your members' financial lives with the best technology available.

Ready to see a simple switch in your authentication strategy? Click to download the FLEX Digital Banking eGuide.