Strong customer authentication (SCA) is a new requirement for companies that process customer payments in Europe. It entails the implementation of authentication control during payments – asking the customers two of three of the following: something they know, something they own, and something they are. SCA is put in place to make online payments more secure and to reduce the likelihood of fraud.
However, not all implementation methods are created equal. Although the principles behind the SCA regulation are sound, some multi-factor authentication is stronger than others. Some of the ways that cybercriminals can still pierce this security are through SIM swapping, social engineering, and malware attack. Therefore, when using authentication solutions, businesses must choose that which bypasses the weakness of passwords and eliminates the threat of SIM swap and engineering attacks.
One of the attributes of a ‘stronger’ strong customer authentication is the use of cryptographic keys. This provides customers with privacy and security while accessing their bank accounts or other sources. Another is the use of a digital signature tool for transaction confirmation. Digital signatures add another layer of fraud prevention in the checkout process.
Lastly, an ideal SCA must not cause any lags or complications to the mobile identity verification of online payments. As the ultimate goal of enabling e-commerce operations is to increase revenue, the entrepreneurs must ensure that the process from start to end is smooth and convenient. The payment process, while it must have added security integrations, must still remain frictionless and fast.
LoginID FIDO2-certified Authentication Solution
LoginID is a FIDO2-certified biometrics authentication provider that provides strong employee or customer verification and transaction confirmation. LoginID authentication use the digital signature and private key cryptography, which ties the end user’s biometric to their device.
In the face of the passwordless movement, this product is leading the progress towards creating a more secure, private authentication for the future – LoginID. Learn more about how LoginID boosts fraud prevention in an infographic.
