Technology has enabled companies to connect to a larger audience, share information instantaneously, and carry out real-time transactions over a remote setup. However, in exchange for these advantages are the risks to the customers’ data and the company’s assets.
Fraud is one of the many risks companies and customers face in today’s digital age. It is where cybercriminals use techniques such as phishing attacks to deceive someone for financial or personal gain. These attacks can cost the company financially and reputationally.
Industries and regulatory authorities recognize these threats and their repercussions. To help protect organizations in achieving digital growth, they issue compliance requirements like the PSD2 strong customer authentication (SCA). The Revised Payment Services Directive 2 aims to give companies with online platforms a minimum safeguard for maintaining the privacy and security of their data and other assets.
Under the regulation, the customer authentication must be based on two or more of the following elements: knowledge, possession, inherence. Simply, it means that the company must employ two of either PIN, biometrics, or security token or each of their equivalents during the verification process.
In response, companies must adhere to the policy and employ this multi-factor authentication system in their payment transactions. The next challenge organizations will face is finding the right identity verification solution for their platforms. Many developers now market their authentication products to these organizations, and it is the latter’s responsibility to choose one that suits their company best.
One excellent product in the market is LoginID. It is a FIDO2-certified passwordless authentication solution that employs digital signature API, WebAuthn protocols, and W3C specifications. All of these are put together to deliver a secure, private authentication for the future – LoginID.
Learn more about how to choose a ‘stronger’ strong customer authentication for fraud prevention in an infographic from LoginID.