Nowadays, what people want is to make their lives much more accessible. This includes the use of technology, where everything is just one click away only. Technology is more about addressing a human need than understanding the workings and dynamics of the natural world. This is what science is all about. Any technological solution to a long-standing problem has allowed people to understand the world better, resulting in the development of new technologies.
It goes beyond scientific knowledge. It includes practical understanding, values, and facts. An example of this is the use of customer authentication. However, with what’s happening around the world, sometimes it is not always safe. There are many reports about scammers and hackers. Criminals are around you, lurking across to find ways how they can manipulate your information and how they can use it to get something from you.
This is why authorities are implementing stricter rules and measures to this kind of problem. For instance, enterprises can incorporate FIDO2 into their websites or applications.
The FIDO (“Fast IDentity Online”) Alliance was established in 2012 as an industry association to decrease the dependence on passwords. Traditional password-based authentication is insecure, inconvenient, risky, and challenging to scale. These challenges are overcome by the Alliance, which develops standards that allow interoperable authentication across platforms, devices, and websites.
These weaknesses are addressed by FIDO2, which uses standards to ensure security, privacy, convenience, and scalability.
If you are a client, you will be asking for more security and more privacy. The technology used by any corporation should offer a safe and reliable environment to its consumer. Consider those who have received FIDO2 Certification for its authentication and privacy platform.
The ongoing PSD2 (Payment Service Provider Directive) requirements surrounding strong customer authentication and the SCA have led to a high abandonment rate for eCommerce in Europe because merchants and issuers have difficulty implementing it due to high costs, lengthy implementation cycles, and vulnerability to fraud.
Merchants, therefore, look for and implement the correct type of SCA and Fraud Prevention Actions for their online activities.
PSD2 Requirements for Strong Customer Authentication
PSD2 falls under articles 6, 7, and 8. Each of these articles requires at least two multi-factor authentications.
- a PIN or password,
- laptop or security key; and
- fingerprint biometrics or face ID.
The second category is found under article 9.3.a, which states that authentication devices must not interact with other authentication methods to avoid discrepancies with a digital signature.
PSD2 was created to prevent fraud derived from the principle surrounding it. However, it is also true that not all methods of SCA implementation produced by different companies have the same strength when it comes to digital signature authentication.
Tech-savvy fraudsters have their way of bypassing multi-factor authentication through social engineering. For this reason, online retailers and issuers need to be aware of the weaknesses in their authentication and make it necessary to strengthen their authentication methods to avoid being a victim of online scams.
Through Social Engineering, fraudsters can access multiple bank accounts for a single user and done in ways like phishing and man-in-the-middle (MITM) attacks. These attacks trick users by sending you emails with a link that will ask that you provide your usernames and passwords—clicking the link and providing your sensitive information allows scammers to access your bank account or online wallets.
Learn more about strengthening online authentication through this infographic by LoginID. For a more secure, private authentication for the future – LoginID.