‘Stronger’ Strong Customer Authentication Boosts Fraud Prevention
The eCommerce industry has seen rapid growth over recent years. This comes as more people have transitioned to the digital world to conveniently and comfortably acquire goods and services. But, usage of eCommerce platforms surged when the COVID-19 pandemic broke out.
Consequently, along with the increase in the use of online shopping platforms is the utilization of digital wallets and a shift in mobile payments. And because more consumers and businesses are becoming reliant on mobile digital wallets and digital payments for transactions, business entities are faced with the challenge of implementing the right kind of strong customer authentication methods. They also need to employ more robust fraud prevention measures in their networks, such as Payment Services Directive Two (PSD2).
PSD2 is a regulation legislated by the European Union to mandate more robust security requirements for electronic payment services. PSD2 strong customer authentication leverages multi-factor authentication (MFA), which combines authentication factors, such as: possession factors (badges, cards, on-device cryptographic keys); knowledge factors (password, PIN code, pattern code); and inherence factors (facial biometrics or fingerprint).
To ensure compliance with PSD2 and other regulations while employing strong fraud prevention measures, enterprises can invest in modern identity proofing solutions, such as Fast Identity Online or FIDO 2.0 authentication solutions that use mobile and biometrics technology for stronger authentication.
Modern technology has enabled the development and usage of digital wallets and mobile payment methods. Businesses and other organizations are shoring up their capabilities to implement these features into their digital platforms and provide their customers with a more seamless online experience. In addition, enterprises are also integrating stronger authentication methods into their systems to reinforce more robust cybersecurity measures and prevent fraud.
For more information on how biometric authentication can help businesses leverage secure, private authentication for the future, read this infographic created by LoginID.