What is authentication?
Authentication is the process of verifying a user's identity to grant them access to specific systems, applications, or data. For example, authenticating that a banking customer is who they say they are when they log in to their banking app. Authentication can include components, such as multi-factor authentication, biometric authentication, Context Aware™ Authentication, and passwordless authentication.
Why is customer authentication important?
For many industries and businesses, authentication is an essential security measure, but especially so for financial institutions, as it prevents unauthorized access that could result in digital banking fraud.
How does authentication protect users from hackers?
This security technology provides access control by checking that a user’s credentials match what the system has on record. If the two match, the user is granted access. There are three types or factors of authentication: knowledge, possession, and inherence. The knowledge factor is something you know, like a password or PIN code. The possession factor relates to something you have, like a mobile phone or laptop. The inherence factor refers to something you are, like your fingerprint.
What’s the difference between single-factor authentication, two-factor authentication, and multi-factor authentication?
A username and password combination is a common type of authentication that is still in use today. It is also known as single-factor authentication, which means it’s not used alongside other authentication measures like biometrics. However, the technology behind single-factor authentication does not provide adequate protection against today’s cyberattacks as hackers can crack passwords — especially simple, reused ones — in a matter of seconds.
Two-factor authentication (2FA), such as a password plus a one-time PIN (OTP), is more secure than single-factor authentication in preventing unauthorized access. But multi-factor authentication (MFA) is the preferred authentication standard today. MFA means using more than two factors of authentication, such as a password, device ID, and biometrics to verify a customer’s identity.
Authentication is the process of verifying a user's identity to grant them access to specific systems, applications, or data. For example, authenticating that a banking customer is who they say they are when they log in to their banking app. Authentication can include components, such as multi-factor authentication, biometric authentication, Context Aware™ Authentication, and passwordless authentication.
Why is customer authentication important?
For many industries and businesses, authentication is an essential security measure, but especially so for financial institutions, as it prevents unauthorized access that could result in digital banking fraud.
How does authentication protect users from hackers?
This security technology provides access control by checking that a user’s credentials match what the system has on record. If the two match, the user is granted access. There are three types or factors of authentication: knowledge, possession, and inherence. The knowledge factor is something you know, like a password or PIN code. The possession factor relates to something you have, like a mobile phone or laptop. The inherence factor refers to something you are, like your fingerprint.
What’s the difference between single-factor authentication, two-factor authentication, and multi-factor authentication?
A username and password combination is a common type of authentication that is still in use today. It is also known as single-factor authentication, which means it’s not used alongside other authentication measures like biometrics. However, the technology behind single-factor authentication does not provide adequate protection against today’s cyberattacks as hackers can crack passwords — especially simple, reused ones — in a matter of seconds.
Two-factor authentication (2FA), such as a password plus a one-time PIN (OTP), is more secure than single-factor authentication in preventing unauthorized access. But multi-factor authentication (MFA) is the preferred authentication standard today. MFA means using more than two factors of authentication, such as a password, device ID, and biometrics to verify a customer’s identity.
The future of authentication is moving towards solutions that are more secure, and provide a good user experience, such as biometrics and other passwordless options. In this respect, the mission of industry regulators, the FIDO Alliance, is to reduce the reliance on passwords and move towards more secure passwordless authentication, such as passkey technology.
Example:
A consumer wants to make a big payment to a friend via the Venmo payment service. Their bank requests them to authenticate the payment via biometrics to ensure it’s not a fraudster making the transaction. Once they verify their identity via a fingerprint scan, the transaction is approved.
A consumer wants to make a big payment to a friend via the Venmo payment service. Their bank requests them to authenticate the payment via biometrics to ensure it’s not a fraudster making the transaction. Once they verify their identity via a fingerprint scan, the transaction is approved.
Explore further:
Keywords:
Authentication | Strong device identity | Passwordless authentication
- Blog: Digital certificates - a modern solution to privacy, fingerprinting, device collision concerns.
- Article: Explore how multi-factor authentication (MFA) and biometrics offer robust protection against social engineering attacks.
- Podcast: How biometric authentication is reshaping payments.
Keywords:
Authentication | Strong device identity | Passwordless authentication
