‘Stronger’ Strong Customer Authentication Boosts Fraud Prevention
Based on The 2021 Identity Fraud Study by Javelin Strategy & Research, identity fraud scams in 2020 cost a total of $43 billion. The report reveals how devastating fraud is to both consumers and businesses.
With the increasing use of a digital wallet and online platform today, the risk for cyber identity theft and fraud is much higher. Companies are responsible for protecting their assets and their customer’s interests by implementing safeguards.
Compliance with the authentication requirements is one way to protect the company platform from identity fraud scams. For example, in the EU, payment services and payment service providers (PSP) are obliged to employ strong customer authentication (SCA) under the Revised Payment Services Directive (PSD2).
SCA features a multi-factor approach where verification must be based on at least two of the three: something they know, something they own, and something they are. Authentication based on something they know refers to the user’s input of a PIN or password. Something owned is the use of a mobile phone, laptop, or security key. Finally, something they are speaks of a biometric verification like a fingerprint or face ID.
Many developers are marketing their authentication solutions today, helping companies in their compliance with SCA. However, not all programs are created the same. Although it adheres to the SCA provisions, each has a different way of delivering security.
For example, LoginID’s VISA delegated authentication program follows FIDO2 protocols to maintain user privacy while verifying their identities. The solution helps organizations reduce online fraud while increasing chances of customer conversion with its smooth user experience. It is simple, cost-effective, and adheres with the PSD2 principles.
Protect the organization’s customers and systems with a secure, private authentication for the future – LoginID. Learn more about how a ‘stronger’ strong customer authentication boosts fraud prevention in an infographic from LoginID.