Passwords generally defend against unauthorized access to either a computer or personal account. It has been the barrier protecting a user’s personal information against hackers and malicious software for many years.
However, as time passed, credential-based authentication became a serious security risk to the integrity of secure networks and was often targeted by opportunistic criminals to gain unauthorized network access. In truth, credential theft is cited as one of the primary reasons for data breaches that cost organizations significant amounts.
But what makes passwords susceptible to theft? Compromising or thwarting password security is not difficult for most hackers. According to the 2020 Verizon Data Breach Investigation Report, 79% of hacking leveraged stolen credentials proving how unreliable passwords provide security.
Moreover, criminals are now employing sophisticated tactics for obtaining credentials and circumventing credential-based security systems. These include Phishing, Dictionary Attack, Credential Stuffing, and more.
The security industry has long been trying to eliminate passwords as they are viewed as weaknesses. While PINS and passwords have been around for a long time, both did not provide enough barriers for hackers.
Fortunately, authorities and tech developers have implemented PSD2 (Payment Service Providers Directive) that has already taken effect across Europe. It addresses identity verification problems and other requirements surrounding strong customer authentication (SCA).
The requirement for strong customer authentication under PSD2 must be:
- Something known – PIN or Password
- Something owned – mobile phone, laptop, security key
- Something you are – a biometric like a fingerprint or face ID
Using the following authentication factors can effectively prevent fraudulent activities and eliminate the threat of identity theft. More importantly, merchants and other issuers must also consider device-based and biometric authentication factors.
Biometric authentication is a security process that involves verifying a user’s identity using their unique biological characteristics. It is a rapidly evolving technology that can provide an extra layer of security and protection, ensuring only the right people access sensitive information.
In contrast with passwords, biometric authentication is more difficult to bypass as biological characteristics are unique to every person.
Some of the most common biometric authentication technologies that people use include fingerprint recognition, face recognition, and even voice biometry.
It is now widely used in various applications such as banking transactions, law enforcement, mobile access, airport security, and more. Users can now enjoy faster, more convenient, and secure services with biometrics authentication.
Online merchants seeking to meet the PSD2 standards for strong customer authentication and employ effective real-time fraud prevention measures can integrate LoginID’s FIDO2 passwordless authentication platform in their website or app. LoginID’s solution utilizes the private key cryptography of the FIDO2 protocol, which ties the end user’s biometric to their device.
Additionally, LoginID offers fido2 key certified transaction confirmation with a digital signature tool that enables users to protect against fraud.
Undoubtedly, passwords have long been the primary means of protecting personal information and identity, but they can provide many setbacks in digital security. On the other hand, biometric authentication provides ultimate authentication protection that meets PSD2 standards.
Want to learn more about strong customer authentication? Visit LoginID’s website.
