The Electronic Funds Transfer Association (EFTA), which works to advance electronic payments and commerce through responsible federal government relations and member education, released its second white paper on, “User Authentication,” which details the benefits and challenges of utilizing user authentication as a component of an overall security strategy.
According to the Department of Commerce, U.S. consumers spent a total of $92.8 billion in online retail sales during the first quarter of 2016, an increase of 3.7% from the fourth quarter of 2015.
As more and more payments are made over the Internet, user authentication becomes necessary specifically to thwart account take over and identity theft tactics. However, required security measures like EMV chip technology and tokenization have dominated many IT departments’ security budgets and personnel resources leaving little left to pursue user authentication initiatives.
The white paper also points to a lag in industry standards and cost as factors contributing to its slow adoption.
Knowing that these challenges exist and preparing for them up front is essential because user authentication affords the following security benefits:
• Consumers actively monitor payment accounts, detecting fraud in real-time;
• Authentication measures can be implemented to fit unique needs of each environment and;
• Authentication supports a variety of payment types such as debit cards, credit cards, ACH and wire transfers across multiple distribution channels online or in person.
Part three of the series will focus on the challenges associated with the practical application of user technology in the marketplace.
EFTA’s nearly 300 members include the nation’s leading financial institutions, ATM owners, networks and manufacturers, payment processors, card companies, software companies, state governments and technology services providers.
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