Juniper Research predicts e-commerce fraud costs will exceed $100 billion by 2029, posing significant challenges for issuers to balance fraud prevention with smooth digital experiences., as per Juniper Research The European financial sector can tackle this issue by implementing Risk-Based Authentication (RBA), a flexible solution that adjusts authentication rigor based on fraud risk.
Risk-based authentication, or adaptive authentication, prevents fraud by assessing the risk level of each financial transaction. It combats account takeovers and online fraud by aligning authentication methods with the associated risks. For banks, RBA is crucial for fostering customer loyalty and driving growth, as it reduces friction and enhances the overall customer experience.
Risk-based authentication (RBA) dynamically evaluates contextual factors like location, device type, and user behavior to determine risk before granting access. This method enhances security, minimizes dependence on static credentials, and delivers a better user experience by verifying identities based on predefined policies to control access to resources.
Risk-based authentication (RBA) allows issuers to leverage risk insights to minimize user friction, delivering a seamless yet secure experience for legitimate customers. By applying context-aware security measures, RBA reduces disruptions and builds trust throughout the transaction process. This approach helps financial institutions boost approval rates, enhance customer satisfaction, and strengthen relationships, all while effectively combating fraud.
Risk-based authentication (RBA) services are offered by a number of companies, including IBM Security Verify Access, Duo Security, iProov, Kount, Okta, OneLogin, Ping Identity, Prove, RSA, and SecureAuth.
The rise of digital banking, BYOD, and IoT increases vulnerability to cyberattacks. IoT endpoints have faced malware threats, but risk-based authentication can limit hackers by quickly blocking access.
Moving forward, Risk-Based Authentication (RBA) is poised to revolutionize digital security and user experience by dynamically adapting authentication measures based on real-time risk assessment. Leveraging advancements in artificial intelligence (AI), biometrics, and real-time analytics, RBA promises to enhance security, improve user convenience, and reduce fraud across various industries.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
