Market Insights

New release from the Paypers: Identity Verification & Authentication Guide

March 13, 2019

Reliable identity authentication and verification are persistent challenges for individuals and companies across industries. Particularly in the wake of a slew of high-profile data breaches experienced over the last several years, the ability of service providers to establish confidence that they’re interacting with the correct user every time is paramount both to business success and customer safety.

Continued education of these topics remains one of the most valuable lessons we have learned here at OWI, and is why we were so pleased to read a newly issued report from the Paypers, a Netherlands-based leading independent source of news and intelligence for professionals in the global payment community, titled “Web Fraud Prevention, Identity Verification & Authentication Guide 2018-2019.” The Guide covers several security challenges encountered in the ecommerce and banking, and financial services ecosystems. Moreover, it provides payment fraud, and risk management professionals with a series of insightful perspectives on key aspects, such as fraud management, identity verification, online authentication, and regulation.

The Guide also address several key reasons why professionals should have an increased focus on strong authentication practices:

    1. To counterbalance the effects of multiple data breaches and protect customers against malicious actors – For instance, in 2016, a third of US businesses have had customer information breached — including the information businesses rely on to authenticate their customers. The mass compromise of passwords has led to an increased risk of fraud on consumer accounts and network-level attacks from credential-stuffing botnet attacks.
    2. Because we have the technology – Mobile devices are a clear driver of traditional strong authentication. These devices have increased the opportunity for businesses to leverage more than just passwords to authenticate their customers and employees by facilitating both possession-based authentication (e.g., device fingerprinting, SMS-based one-time passwords (OTP), etc.) and inherence-based authentication (e.g., fingerprint scanning, voice recognition, etc.).
    3. To minimize false positives – As accuracy and customer loyalty are crucial for businesses, to win customer’s support, authentication solutions must prove their effectiveness in both keeping bad actors out and ensuring a positive security perception for good ones.

For more information download a copy of the full report on the Paypers website here, and make sure to check out the most important payment developments from around the world.