#payment authentication

Digital identity verification is a very important technology in this era that we are living in right now. It is the process of validating the identity of a person electronically. There are many benefits associated with digital identity verification. The future of this technology would be in creating verified identities that are accurate and secure.

The number of verification and authentication methods that are available has increased exponentially because of the benefits it provides. Due to the increased demand for digital identity verification, there is a plethora of avenues that can provide verified identities both online and offline.

The primary purpose of digital identity verification is to prevent users from creating multiple accounts for different purposes, like insurance, loans, and so on. One person should be able to have a single verified identity that he or she can use in order to avail benefits from different places instead of creating multiple identities.

A lot of companies, both big and small, are making use of digital identification verification in their business models because of the increase in the benefits that it provides. There are several additional advantages that you can use from this technology, reduction of costs, this technology is highly efficient and secure, and it is easy to use, less time-consuming, and is a hassle-free process for users.

One of the things that you will love about digital identity verification is the ability for a user to securely provide their personal information through an identity verification service to any other entity, like a bank, telecommunications provider, utility company, employer, and so on. With this technology, consumers can also receive better offers and promotions from entities based on their preferences and interests, which is possible due to the digital footprint left by these interactions.

When it comes to securing your business systems, one of the technologies that you should definitely consider implementing is FIDO2 biometric authentication. In this digital world that we live in, protecting confidential information is very important, and doing this with traditional passwords and keys is so difficult. The passwords and PINs no longer provide enough security to ensure data is kept out of the hands of hackers and unauthorized individuals. Below, we look at some of the ways that you can benefit from using biometric security in your business.

While passwords can work in some cases, they are not enough. With the rise in security breaches in recent years, so many organizations believed that two-factor authentication (2FA) would be the answer. Whether to access a smartphone or server room, some technology experts reasoned that two passwords are better compared to just one. Even though this logic is solid, the simple truth is that two-factor authentication is built on a weak foundation due to the fact that there is still a reliance on passwords.

A lot of people use the same common characters repeatedly for their passwords. Since entering in password information is a very tedious and monotonous activity, many people prefer to rely on common phrases or birthdays as a way of simplifying the process. Because of this, the result is that the level of security achieved by 2FA is not enough.

Even two factor authentication that makes use of physical tokens has not been successful enough in making authentication practices foolproof. In order to use a 2FA token for authentication, you need to type your passwords and plug your hardware tokens into a device to enter an additional code. This takes a lot of time, and if a token happens to be stolen, the thief can potentially use it to access sensitive information. FIDO2 biometric authentication is a much more effective way to prove identity.

If you are a business owner, or even just an individual with important data and systems, you need to know to know the right real time fraud prevention techniques to use to make sure that your business systems are not compromised. Fraud prevention refers to the implementation of a strategy for detecting fraudulent transactions or banking actions and prevent these actions from causing financial and reputational damage to the customer and financial institution. With online and mobile banking channels becoming more popular and financial institutions continuing to digitize, a strong fraud prevention strategy is only going to become more important.

Fraud prevention and cybercrime are connected, and they are always changing. As fraud prevention professionals develop new authentication and fraud detection solutions, the fraudsters are networking with each other, monetizing as well as exchanging information on the Dark Web. Nowadays, fraudsters are using sophisticated strategies as well as malware to succeed in their fraudulent activities. Even though fraud prevention technology has made great advances in the recent years and continues to do so, it is imperative that you are aware of fraudulent tactics and understand how to prevent fraud in your business.

Financial service firms are continuing to invest money in fraud detection and prevention in order to protect their customers. Even though these are related concepts in cyber security, they differ in important ways. Fraud prevention occurs before the fraud attempt, and its goal is to reduce the risk of future fraud. Fraud detection occurs during the fraud attempt, and its goal is to mitigate fraud. Sophisticated fraud detection solutions can also help reduce false positives, something that improves the user experience and increases the productivity of fraud teams.

Online identity verification is one of the technologies that have emerged to help legal, real estate, accounting, and similar industries streamline their online identity verification processes. But many industries are still skeptical about the significant, positive impact that this technology brings, especially since the conventional face-to-face methods have served them well for several years. For you to have a better understanding of whether these new technologies are worth your investment, check out the following benefits of online identity verification.

First of all, this technology can lead to increased workflow efficiency as well as lower overhead costs. When you digitize your identity verification processes, it can save you time, effort, and resources because you will accomplish the verification steps more quickly and efficiently. If you manually request, photocopy, upload, and process identity documents, it will entail more paper-based materials, filing cabinets and other related items, administrative personnel, and so on. All these add to your office management costs.

Another downside with manual workflows is that they eat up more minutes and create increased idle time, meaning that you will have fewer productive transactions throughout the day, week, month, and year. When you switch to online ID proofing, you will spend less on training sessions and materials, shorten your Know Your Customer work and communication flows, and assign more business-critical tasks to your employees.

There are some online identity verification solutions that automatically update individual and family profiles, notify you of any information updates, and remind you of upcoming document expiry and replacement dues, and so on. This simplifies your compliance audits and reporting, client onboarding, as well as other identity proofing activities.

If you have never thought of using delegated authentication, it is something that you should definitely consider. Delegated authentication is similar to single sign-on (SSO), with the difference being that it offers a slightly different experience to users. With delegated authentication, one system relies on another system to validate user credentials. For instance, you can configure your Salesforce org to rely on a Lightweight Directory Access Protocol (LDAP) server to validate credentials. Both single sign-on and delegated authentication enable users to log in to multiple apps with one set of credentials, but with delegated authentication, users are supposed to log in to each app separately.  

Delegated authentication has a lot of benefits to merchants, issuers, and cardholders.   Merchants benefit from this technology in the ability to control all aspects of the customer’s payment journey and prevent cart abandonment. Equally important, the merchants can shift the liability to the issuer if the authentication is FIDO compliant.

As for issuers, they are relieved of the need to manage certification of consumer wallets and devices, as this is done by the networks. Issuers also get visibility of security and functional measures taken by the authenticator ensuring SCA and PSD2.

Cardholders will start to experience a more consistent authentication process with this technology, not only for payments, but also access to bank accounts. As merchants adopt FIDO, cardholders will no longer experience two authentications: one at the account level and one at the payment level. As biometrics proliferate, delegated authentication will eliminate passwords across all validators.

With delegated authentication, card networks make it possible for merchants to control the entire cardholder experience. Issuers reduce costs while consumers can use biometrics for online shopping, and passwords slowly fade away. Also, qualified merchants can use their own authentication process to approve purchases or pass the cardholder’s FIDO-based credential to the network for approval.

With the popularity of FIDO2 passwordless authentication continuing to rise every day, you may be considering using it in your business. This standard uses public-key cryptography to guarantee a secure and convenient authentication system. The FIDO2 standard uses a private and public key to validate the identity of each user to achieve this. To use FIDO2 authentication, you will first have to sign up for it at FIDO2 supported sites.

The most significant advantage of FIDO2 passwordless authentication is the fact that it creates a much smaller attack window for cybercriminals. In order to access your sensitive private information, attackers will need a FIDO2 token, which is physically always by your side in the form of your device.

If you use several FIDO2 supported sites, then you can enjoy another advantage in the form of a more streamlined experience, because you will not have to remember multiple login details and passwords for each of your accounts. The FIDO2 U2F security key will work across the board for all supported platforms and offer maximum security as well as user comfort.

While FIDO2 passwordless authentication can benefit your organization in major ways, it also has disadvantages. Of course, like any other security method in the world, this standard has certain drawbacks. These drawbacks are not deal-breakers, but instead they are something you should be aware of if you are planning to implement the FIDO2 passwordless login as a security practice.

Most notably, FIDO2 authentication requires an additional security step compared to traditional password login standards if you use it as a regular component of 2FA. With that in mind, such a system is not the most practical one if you log into more FIDO2 enabled websites a number of times each day.