‘Stronger’ Strong Customer Authentication Boosts Fraud Prevention

Convenience and accessibility are just among the things that make technology well-loved by people. After all, it is meant to assist and make people’s lives easier. Technology has proved to be a great invention in making people’s lives more comfortable throughout the years. And to ensure that this never stops, technology is continuously improving. But as technology advances, so do criminal activities. 

These days, there are numerous reports coming from people who have been victims of scamming and hacking. Criminals are continuously finding ways and coming up with new modus operandi to execute their illicit activities. And now that almost everything (shopping, bank transactions, bills payment, etc.) is done via the internet and requires online identity verification, these law offenders have found a more convenient way to perform their crime. 

Because of this, the authorities and tech developers are constantly upgrading their systems. One example of this is Payment Service Providers Directive or PSD2. The PSD2 took effect across Europe. It was implemented to enhance innovation and create competition in the banking sector. It was aimed to ensure a safer online payment system for customers. Moreover, it was designed to improve the protection of consumer information and address payment fraud.

The primary requirement of PSD2 for strong customer authentication is the MFA or multi-factor authentication. MFA includes a PIN or password, a mobile phone, laptop, or security key, and biometrics. However, this robust verification method still has its vulnerabilities. With that being said, online merchants can integrate FIDO2 passwordless authentication within their websites. By using this, they can safely use digital identity verification. This solution utilizes the use of cryptography combined with the user’s biometric to their device.

To know more about this online safety protocol and to enjoy a secure and private authentication for the future, you can read further in this article brought to you by LoginID.