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An encrypted website and secure network aren’t very helpful when customers have been unknowingly routed to a criminal’s lookalike site, writes Simon Thorpe, director of product for Authy at Twilio.
This is why verifying consumers’ identities by authenticating their email addresses and other details must be as seamless as the rest of the onboarding experience, Ryan Wuerch , CEO and founder of cash-back platform Dosh , said in a recent PYMNTS interview. . We have bank-level encryption to ensure information is safe and secure.
Technical Controls The Amendments introduce a number of heightened technical controls, including: MultifactorAuthentication: With only very limited exceptions, multifactorauthentication (MFA) is now required for “any individual” accessing “any information system” of a covered entity.
The headlines surrounding PSD2 trumpet the arrival of open banking – where customers and companies have access to data in one place and can share it with third parties through APIs – but there is also the need for strong customer authentication (SCA). PSPs have been steadily gathering more information from merchants.
The fact that the customer is not present physically at your store makes it a high-risk transaction, and the use of security measures like two-factor authentication is highly recommended. A good example is restaurants that accept customer takeout orders over the phone. It serves as a link between your website and your payment processor.
“The answer is to find something that is future-proof,” Nolte told Webster during the discussion, which included examination of what “trust” means for situations that require mobile authentication. PSD2 sets out the requirements for SCA, an identity verification procedure that leverages multifactorauthentication.
Additionally, the strong customer authentication (SCA) mandated by the second Payment Services Directive (PSD2) goes into effect in September of 2019 — and yes, that too counts as “right around the corner.”. As Levin noted, there are ways to try to minimize the fines, such as by instituting technical safeguards like data encryption.
Thus, it’s vital to strike a balance between providing an excellent customer experience and ensuring confidence in transaction authentication and decisioning. Regulations, particularly those related to tokenisation, data localisation, strong customer authentication, and the EU, continue to be areas of our focus.
As AiTM fraud rises, businesses must adopt multi-layered security, biometric authentication, and user education to stay ahead of evolving threats. When the victim enters their credentials, the attacker captures these details and may steal session cookies to bypass multifactorauthentication (MFA).
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