PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Preparing Consumers for Strong Customer Authentication

Tim Sloane by Tim Sloane
February 28, 2020
in Analysts Coverage, Security
0
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?

1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

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

Tags: Authenticationfacial recognitionFingerprintsRisk ManagementSecuritytwo-factor authentication
1
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

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

    Must Reads

    instant payments, real-time payments, RTP

    Banks Developing Instant Payments Products in the U.S. Should Focus on Billers to Generate New Revenue Streams  

    May 31, 2023
    Digital Wallet Use Delivers on Convenience and Security

    Digital Wallet Use Delivers on Convenience and Security

    May 30, 2023
    5 Ways to Protect Your Financial Institution from a Cyberattack

    5 Ways to Protect Your Financial Institution from a Cyberattack

    May 26, 2023
    traditional banks

    How Traditional Banks Can Modernize Without Risk

    May 25, 2023
    identity fraud

    Javelin’s Identity Fraud Study Highlights the Changing Nature of Fraud

    May 24, 2023
    SASE, security-as-a-service

    Security-as-a-Service Secures
    Distributed IT Models

    May 23, 2023
    mule. real-time

    Early Detection of Mule Activity Requires Real-Time Solutions

    May 22, 2023
    embedded finance, ecommerce

    How Retailers Can Enter the World of Embedded Finance Confidently 

    May 19, 2023

    Linkedin-in Twitter

    Advertise With Us | About Us | Terms of Use | Privacy Policy | Subscribe
    ©2023 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    Menu
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • Recent News
    • Resources
    Menu
    • Industry Opinions
    • Recent News
    • Resources
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download this complimentary report from Brightwell: