First Midwest of Ill. to Use PhoneFactor to Block Fraud

First Midwest Bank has agreed to use anti-fraud technology from PhoneFactor Inc.

The Itasca, Ill., unit of First Midwest Bancorp Inc. said Friday that it would use PhoneFactor's out-of-band authentication product to improve security for online banking.

PhoneFactor's system is invoked when the bank's customer requests a money transfer online. The system places a call to the user and requests a PIN be typed on the phone's keypad before the transaction is approved. The user can also indicate that the transfer is unauthorized to alert the bank of the fraud attempt.

PhoneFactor is based in Overland Park, Kan.