In recent years, the world’s continual shift to the digital world has attracted more cybercriminals. These hackers utilize ever-evolving techniques using modern technology and social engineering. Password alone is not enough anymore as it has already become the primary target for hackers.
This is why companies continue to invest in more robust, strong customer authentication solutions integrated into their processes. Apart from this, many governing bodies have also updated existing regulations to keep up with the demands of the digital world, like the PSD2.
The European Union saw the need to modernize the first Payment Service Directive (PSD), leading to the first talks to amend the guidelines. PSD2 significantly boosts cyber security, competition, and customer experience in one of the most attacked business types in the world, the finance and payments industry.
The requirements under PSD2 fall under two categories. The first one is multi-factor authentication (MFA) which will require customers to undergo two or three levels of identity verification before accessing their accounts. The MFA guideline of PSD2 contains three elements, namely knowledge, possession, and inherence.
The knowledge element refers to something that the customer already knows, usually knowledge-based credentials like passwords. The possession element has to do with hardware tokens that can produce codes. Meanwhile, inherence indicates the biometric information consumers can use for identification, such as fingerprints or voice recognition.
LoginID’s FIDO2 passwordless authentication can provide enterprises with effective fraud prevention solutions while abiding with the standards set by PSD2. Their solution uses private key cryptography that can be combined with the customer’s biometric information using their device.
As the world continues its journey towards a passwordless society, their product leads the charge into a more secure, private authentication for the future – LoginID. Check this infographic to learn more about how LoginID can help improve a company’s fraud prevention.
