PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Preparing Consumers for Strong Customer Authentication

By Tim Sloane
February 28, 2020
in Analysts Coverage, Fraud & Security, Security
0
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
From 1 to 2 or More Factor Authentication Methods, and Now Back to 1?

From 1 to 2 or More Factor Authentication Methods, and Now Back to 1?

This Forbes article starts by discussing how customers may need to be educated about the increased usage of two factor authentication, especially if that authentication is implemented at every touch point regardless of risk – which shouldn’t be the case. It then makes a recommendation that I disagree with:

“Having every part of the authentication process happen within one app is key to delivering a quick and simple experience. Rather than being limited to fingerprints and facial recognition – or sci-fi style retina scans – authenticating what someone “is” can be as simple as a photo or video taken on your phone’s camera.

There are two ways this may take shape. The first starts long before a specific transaction is attempted, at the point when a customer is first being onboarded. Banks already use identity verification technology to verify a photo of a new customer against their ID document – to ensure compliance with Know Your Customer regulations. Thanks to this, they can keep the ID document on file, and ask for a new photo to verify against it whenever a transaction prompts SCA authentication. This covers off the ‘what you are’ and ‘what you have’ within one app, and within a short space of time.

The second could be used for larger, more high-risk transactions, where the whole identity verification process happens at the time of the transaction. For customers transferring large amounts of money to a new payee, the process of taking a selfie and a picture of your drivers’ licence is an extra step worth taking – after all, two-thirds (66%) of consumers say that they appreciate security “hurdles” because it makes them feel better-protected.”

I would urge the use of FIDO to leverage the native biometric already on the smartphone. Implemented in the secured banking app, this should be strong enough to protect the vast majority of user accounts. Banks should also be moving to a risk-based approach to challenges.

Challenging the addition of a huge cable company being added to the bill pay probably doesn’t make sense. That said, if the challenge is implemented such that it is identical to the natural use of the phone, it will be less friction than suddenly asking for a new form of authentication such as a selfie. 

Now is the time to start your transition to the security inherent in a properly secured smartphone because that’s the way the world is going!

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: AuthenticationFacial RecognitionFingerprintsRisk ManagementSecurityTwo-Factor Authentication

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025
    Fraud Monitoring

    What to Expect When Nacha’s Fraud Monitoring Rules Take Effect

    July 1, 2025
    payments

    Don’t Just React to What’s Next in Payments—Anticipate It

    June 30, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result