Financial Industry Needs to Play Stronger Defense

Financial Industry Needs to Play Stronger Defense

March 7, 2019

It’s March, which means lots of basketball madness filled with upsets. While e-commerce businesses are used to playing tough defense against fraudsters, the lack of effective authentication measures has given bad actors a lot of free throws.

A new report, The Future of Adaptive Authentication in the Financial Industry from the Information Security Media Group, highlights the financial sector’s challenges in authentication practices and strategies and reveals the mounting tension between reducing fraud and enhancing the digital customer experience.

Given the challenges with authentication, it’s possible that next generation of multi-factor authentication tools could be the Cinderella story of the financial industry. The report found that 96 percent of organizations use legacy authentication processes linked to usernames and passwords.

Nearly half (44 percent) have a collection of dissimilar tools that complicate effective coordination, while another 44 percent are challenged by the use of legitimate credentials exposed in data breaches and social engineering schemes in account takeover attempts.

“The report’s findings echo what we are seeing with our customers,” said OneSpan CEO, Scott Clements in a press release. “Financial institutions are under pressure to improve their defenses against continuing and evolving threat vectors. Many are now choosing innovative technologies that dynamically respond to attacks as part of a layered security approach that stops fraud while improving the customer experience.”

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