‘Stronger’ Strong Customer Authentication Boosts Fraud Prevention

Today, individuals experience a daily reality such that installments and exchanges are for the most part made on the web. While it gives different benefits, the quick development of advanced wallets and other internet based installment applications guided installment extortion dangers to clients and associations.

Fraudsters are becoming increasingly sophisticated in hacking which can be devastating. A single breach can cost significant amounts and cripple businesses within minutes.

The Strong Customer Authentication, or SCA, is one of Europe’s core payment services and must abide by the revised Payment Service Directive (PSD2).The PSD2 strong customer authenticationis a regulatory requirement for online European businesses to reduce fraud and risks associated with online payment. 

This is implemented to protect organizations and consumers alike across digital channels. The SCA also prompts banks to uphold a security standard by affirming users before any payments are authorized.

To remain compliant with SCA, banks as well as other financial institutions must collect at least two out of the three verification factors:

1. Something a person possesses, such as a mobile phone, smartwatch, or smart card.
2. Something a customer knows, such as PINs, passwords, security questions, etc.
3. Something an individual inherently has, like a fingerprint, voice recognition, retina recognition, and more.

The benefit of having strict identification methods helps keep customer data safe and secure while remaining compliant with privacy guidelines of governing regulators. Additionally, while the SCA creates user-end friction and complexity to online payment systems, it still presents a series of benefits that both merchants and customers can leverage.

Moreover, businesses under the banking and financial sectors must also consider digital signature API. eSignatures allow enterprises to collect people’s signatures for agreements, contracts, legal documents, and deals directly on their website or product.

With eSignatures, signing requires no further complications, and the process from signing to sending them to parties involved is quick and easy. It is also time-savingbecause it lessens the time it takes to sign all documents.

Visit LoginID’s website to learn more.