‘Stronger’ Strong Customer Authentication Boosts Fraud Prevention

The Payment Service Providers Directive, or PSD2, is now going into effect in several European countries. The requirement for strong customer authentication (SCA) has presented some difficulties for merchants and issuers regarding the effectiveness of the implementation for biometric identity verification. High abandonment rates in e-commerce were due to factors like high costs and lengthy implementation cycles.


At least two of the elements listed below must be met to ensure strong customer authentication under PSD2.

1. Something known, like a PIN or password.

2. Something owned, such as a mobile phone, laptop, or security key.

3. Something you are, a fingerprint or face ID.


These principles behind PSD2’s strong customer authentication through mobile identity verification are intended to prevent fraud. However, fraud can still occur even if you use some well-known methods that help ensure strong customer authentication. Not all multi-factor authentication methods and their implementation are not always the same. In fraud prevention, some forms of MFA can be stronger than others.


Some hackers still use a combination of social engineering and technical tricks to circumvent fraud prevention measures such as MFA, which is the heart of strong customer authentication. Social engineering attacks such as phishing, SIM swapping, and malicious accessibility are hackers’ main methods to bypass strong customer authentication.


Websites and applications can use authentication factors to overcome weaknesses in passwords and prevent fraud. A combination of device-based and biometric authentication factors can be more potent than any real-time fraud prevention process that involves a password.

Online retailers, third parties, and issuers must be aware of various points of weaknesses in consideration of robust customer authentication methods that can help prevent fraud and other threats to anyone’s data and further personal information. For more information about boosting fraud prevention through ensuring strong customer authentication, you can head over to this article from Login ID.

Strong Customer Authentication- hUIDHAW123

Leave a Reply

Your email address will not be published. Required fields are marked *