Things To Know About Strong Customer Authentication

 

When it comes to improving the security of your business, one of the things that you should consider is strong customer authentication (SCA). Not only is strong authentication a compliance exercise, but it is also something that can be a driver for innovation.

Authentication is simply the process of proving who an individual is and confirming their intention to perform an action, like allowing access to account information or making a payment transfer electronically. Strong customer authentication is a regulatory requirement that is based on the use of two or more of the following elements: knowledge (something only the user knows, like a password), possession (something only the user possesses, like a mobile phone or a code generating device), and inherence (something the user is, like their facial or fingerprint biometric data).

Strong customer authentication requires two factor authentication as well as dynamic linking (meaning a clear and unforgeable message to the consumer) to ensure the consumer is fully informed and makes an active decision to authorize a payment transaction. In other words, in order to process a payment successfully under the new rules, banks are supposed to ask customers for at least two authentication factors, such as a PIN or password entered on their mobile device. These would constitute two factors, namely knowledge and possession.

The adoption of SCA has been a bit slower than expected. The reason for this is that implementing this technology requires well designed user experience to minimize friction, and striking the balance between SCA and UX has proven to be a challenge to some companies. The most important motivation to deploy strong customer authentication remains fraud, reflecting the importance of the industry challenge.

For more information on strong customer authentication and how it can benefit your business, visit our website at https://loginid.io/

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