Most banks are moving over to various two factor authentication systems these days. Does two factor authentication actually mitigate the security problems such as phishing that plagued the traditional username and password based authentication? Two factor authentication is stronger than the traditional authentication system but it definitely has its own problem as well. The following article provides some insight into the potential problems of two factor authentication.

http://www.networksec.org/index.php?n=Articles.AuthenticationThePitfallOfTwoFactorAuthentication