> Why is this attack not thwarted by the use of external secure keys?

Currently the bank uses a password and a hardware token. Changing that
is a long process and using JS-based RSA is considered a temporary
measure to raise the bar for attackers.

> That's what my bank has issued me. The one-time 6-digit PIN is tied to
some transactional data (last 4 digits of tranferee account number) and
so can't be captured and reused for a different transfer.

That does not work with more sophisticated injects that just wait
until the user perform a payment and change the payment details.
Typically they also patch HTML that shows transaction list etc. to
hide the fraud and change the total balance.

> This seems like a better route than trying to do secure transactions on
an insecure machine.

The important point here is that from banking point of view current
implementations of HTTPS are *insecure* as the users can be tricked to
install extra root certificates using relatively simple procedure
(https://groups.google.com/d/msg/mozilla.dev.security/zPm2M-ieI20/vzhvipASJD0J
talks about doing that for legitimate purposes) even if *the machine
is secure*. Add to that the need to trust all authorities issueing
certificates that must be evaluated against a possibility of loosing a
lot of money and the result is that HTTPS is not much better than
HTTP.

It is sad since SRP and J-PAKE plus passwords and hardware tokens
allows for the user to verify SSL certificate in a cryptographically
secure way with minimal support for those protocols on the server side
and without any hardware upgrade. Given that Firefox already
implements J-PAKE for Sync it is even more pity that that is not
available for use on web pages.
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