Overview of TAN Authentication
SMS TAN is a two-factor authentication method where the bank sends a transaction number (TAN) to the known mobile phone. This method is advised against by the Federal Office for Information Security due to safety concerns. However, some banks still offer SMS TAN as an authentication option.
For online banking transactions, TANs confirm the user’s identity by generating a list of unique TAN numbers, each of which is usable only once. TANs can be received via SMS, token device, or mobile app, providing flexibility in the authentication process.
Security Concerns and Alternatives
Overall, SMS TAN is deemed insecure by various security institutions due to potential vulnerabilities. Customers are recommended to switch to more secure alternatives like mobile app TAN. Multiple authentication options are available, ranging from traditional paper TAN lists to advanced biometric smartphone logins, each with its own advantages and disadvantages.
Understanding TAN in German Banking
A transaction authentication number (TAN) serves as a one-time password for online banking, enhancing security measures. Similar to SMS TAN, TANs can be obtained through SMS, token devices, or mobile apps. The use of SMS TAN is discouraged by experts in favor of more secure authentication methods.
Registration and Access
To access a banking portal, two pieces of information are required: the account number and PIN. The PIN acts as the access gatekeeper, allowing transactions only when entered correctly. Transaction numbers (TANs) play a crucial role in online transactions, providing an added layer of security as a form of two-factor authentication.
Opening a German Bank Account
Prior to opening a German bank account, registration in Germany with a rental agreement and Meldebescheinigung is mandatory. Online banks offer quicker services, while branch banks provide more comprehensive assistance. It is advisable to initiate the account opening process promptly, as it is often mandatory in various scenarios.