Stronger’ Strong Customer Authentication Boosts Fraud Prevention
‘For years, investing in robust online security measures has become the focus for many businesses along with the continual rise of the digital world. Apart from that, regulatory boards have also reassessed existing cyber security guidelines that companies can use to combat the ever-evolving ways of online attacks.
PSD2 (Payment Service Providers Directive 2) is a statute that replaced the first PSD guidelines introduced to the public in 2007 by the European Union. PSD2 is their attempt to further boost security for the customers and encourage firms for other digital security innovations. And one of the main requirements in PSD2 centers around strong customer authentication (SCA) that keep bad actors from attacking.
One of the principal regulations under PSD2 strong customer authentication is the need to implement multi-factor authentication (MFA) that should include at least two of the following: inherence, possession, and knowledge. Inherence refers to the biological data of the customer, like fingerprints or face recognition. Possession is hardware that can generate a code, while knowledge refers to knowledge-based credentials like passwords.
But despite the soundness of the design of PSD2’s guidelines for fraud prevention, not all implementations are equal. Numerous merchants have difficulties implementing the regulations due to many factors, like high cost and long implementation cycles. Apart from that, cybercriminals continue to evolve by combining countless technology hacks and social engineering.
LoginID’s FIDO2 passwordless authentication can provide enterprises with effective fraud prevention solutions while abiding with the standards set by PSD2. Their solution uses private key cryptography that can be combined with the customer’s biometric information using their device.
As the world continues its journey towards a passwordless society, their product leads the charge into a more secure, private authentication for the future – LoginID. Check this infographic to learn more about how LoginID can help improve a company’s fraud prevention.