The invention provides a banking transaction authentication method and system based on image authentication. According to the banking transaction authentication method, a network server obtains reference image information of a user and processes the reference image information to be digital reference image information, wherein feature information of the digital reference image information can be extracted easily; in the process of banking transaction conducted by a user, user equipment requests the user to provide image information for authentication, the image information for authentication is converted to an image sequence, encryption and endorsement are conducted on banking transaction information and the image sequence, and user transaction information is formed; the network server conducts attestation and decoding on the received user transaction information and obtains the image sequence, the image sequence is restored to be analog image information, the analog image information is processed to be digital image information confirming to characteristics of the user, the digital image information is compared with the digital reference image information of the user to enable the identity of the user is confirmed, therefore, security vulnerabilities existing in electronic banking are plugged, and transaction security is improved.