The pandemic fundamentally made a big shift in the market behavior of people. Due to the multiple lockdowns, there has been a significant increase in the digital platform usage of the public. Many people started utilizing the internet for paying their bills, buying groceries, or shopping. Because of this, businesses also had to step up and expand their digital engagements.
While online transactions seem to be convenient, it still has many vulnerabilities. Since the advent of the pandemic, enterprises were only given a short amount of time to reshape their digital platforms in accordance with the public’s demand. The increase in digital platform usage magnified the risks of fraud and other cyberattacks, not only for the organization but also for the customers.
Fortunately, there are strong customer authentication solutions to ensure the safety of both businesses and consumers. And PSD2 strong customer authentication is just one of those.
PSD2 or Revised Payment Service Providers Directive in Europe requires payment service providers to implement strong customer authentication or SCA. With this, companies have to employ more than one user verification method on their checkout flow.
Under the SCA, the online identity verification of a user must be based on at least two of the following elements: inherence, possession, and knowledge.
The knowledge factor refers to something that the user knows. One example of this is inputting a password or PIN. As the name implies, the element of possession talks about something the user owns. This refers to things such as a phone or a hardware token. Lastly, the inherence factor asks for something that the user is, like biometric authentication (i.e., fingerprint or face recognition).
Apart from PSD2, businesses can also use FIDO2 and eKYC. While these two have different protocols, the end goal of these verification systems was all crafted to protect businesses and consumers against cyberattacks.
Building a reliable and secure digital platform for your business is a crucial task every business should fulfill, as this influences the trust of your consumers. A secure, private authentication for the future – LoginID is possible as long as you are knowledgeable about the necessary steps to take.
To know more about these authentication solutions, you can read further this article created by LoginID.
