A system and method for online authentication having at least two levels of authentication has been disclosed. The two levels of authentication provide total security of privileged information by requiring users to authenticate themselves in two stages/levels. The first level of authentication involves simple alphanumeric password verification, which if successful, is followed by a second level of graphical password verification. The graphical password verification is based on the novel concept of challenging users with a dotted grid to enable users to create a non-definable vector pattern of definitive lines by sequentially joining pre-determined dots in the grid.