Lately I've been doing a lot of research on figuring out the best security challenge questions for doing password reset via the web, and I stumbled on a great web site today:
http://www.goodsecurityquestions.com
Here's a few of the useful tidbits from the site:
- "A good security question will not work for all people and most good questions still have some flaws. Therefore, it is best to offer 2-3 sets of questions (more if data is more sensitive) with a variety of questions."
- Don't ask too many questions
- Make sure your questions are grammatically correct
- Avoid questions about color (since there's a limited set of colors people will use to answer them)
- Provide guidelines to users on how to best choose their responses
Lots of good stuff on this site, so be sure to check it out if you're doing work in this area.