The increasing use of digital platforms opened users to threats of cyber-attacks and other vulnerabilities. Some of the risks companies have to protect their digital platform from are social fraud scams, engineering attacks, SIM swapping, malware attack, and fraud. Companies have to set up controls and safeguards like user authentication to reduce their vulnerability to these threats.
Customer authentication is one of the ways companies can protect their data and assets from cybercriminals, particularly fraudsters. Regulatory authorities also recognize its importance, which is why having strong customer authentication (SCA) is now a compliance requirement for companies with digital platforms in the EU.
The EU Revised Directive on Payment Services (PSD2) regulates payment services and payment service providers within the European Economic Area. Part of this is the enforcement of the SCA.
SCA is the authentication based on two or more of the following elements: knowledge, possession, inherence. The knowledge element refers to something the user knows, requiring them to input a password or PIN. The element of possession necessitates something the user owns, like a phone or hardware token. Lastly, the inherence asks for something that the user is (i.e., fingerprint or face recognition).
Companies can now employ these verification methods and comply with PSD2 using authentication solutions. But not all programs are equally equipped to provide high-level security. Some are just enough, but others are stronger.
Particularly, solutions that follow the FIDO2 passwordless authentication use WebAuth, CTAP, and W3C specifications to enhance security without compromising user experience. One excellent authentication program that is FIDO2 compliant is LoginID. It observes the FIDO2 protocols to deliver passwordless authentication UX that companies can trust to prevent fraud while maintaining a seamless experience.
Protect the company’s digital platform and customers with a secure, private authentication for the future – LoginID. And learn more about how and where to get a stronger SCA solution in an infographic from LoginID.
