mcavic - 1:31 am on Feb 14, 2008 (gmt 0)

People use the browsers/computers they have. Those browsers may be infected with keyloggers, etc.

Yes, keyloggers are a big problem. But booting into a special OS in order to access a banking site isn't an acceptable solution. You don't want to fix a technology problem by circumventing the technology.

it might be possible to design some sort of dongle that plugs into a router (or whatever)

I think that's an excellent idea. Make it a USB key, and offer a cheap 8-port USB hub with it for people who use many different banks. The bank could probably use ActiveX or Java to authenticate the key. I bet you could even make Windows natively support it right now. You could take the key to work with you, etc, etc. You'd still want to have a username/password login too.