How PSD2 Strong Customer Authentication Helps Companies Fight Account Takeover

by Kristen White Blogger Account takeover is becoming increasingly more common. Customers are faced with the challenge of not only protecting their identity and safeguarding their accounts but also being conscious of how to conduct eCommerce business safely and securely.

Fraudsters are becoming more intelligent and are illegally using bots to gain access to bank accounts, e-commerce sites, or credit account information. This means customers are vulnerable to fraudulent trades as well as unauthorized purchases and transactions.

How to Prevent Account Takeover

An account takeover normally occurs due to a breach that targets high-profile accounts with the goal to sell the victims’ data, and by credential stuffing and credential cracking.

Credential stuffing is a cyberattack where a fraudster steals lists of usernames and passwords and uses them to gain access to accounts through large-scale automated login requests directed against a web application.

Credential cracking occurs when fraudsters specifically target an individual or company specifically. They invest a lot of time and resources breaking into the person’s or company’s accounts by undermining their password defenses.

Account takeover also involves activities such as fraudulent transactions, transfer of funds from a bank account, and purchase of goods through a compromised eCommerce account. This can affect the brand’s reputation and erode customer confidence and trust in an organization.

The sale of private and confidential data could potentially create serious problems for an organization. To safeguard the identity of company accounts, it is important to understand the basics of account takeover prevention so you can prevent fraudsters from gaining access. These are some measures you should take.

• Fortify Passwords: Users should not be allowed to use simple or compromised passwords. Ideally, passwords should use 16 randomized characters so they are unique and difficult to crack.
• Intervene early: When passwords are strong, unique, and are not compromised, there is little possibility that fraudsters can access an account to obtain credentials and sell them to the cyber-criminals on the dark web.
• Stop Exposure: If credentials are exposed, immediate action is required to protect the accounts that are affected. They should be locked until the password is updated to a unique and uncompromised one, and the user should sign in and reenable all devices.  

Does PSD2 Strong Customer Authentication aid in preventing fraud?  

PSD2 Strong Customer Authentication offers real-time reporting and machine learning capabilities that allow business owners to adapt to and prevent fraud. Furthermore, PSD2 Strong Customer Authentication requirements include digital identification, fraud management, chargeback management, payment gateway, and device intelligence.

There are many benefits that PSD2 Strong Customer Authentication requirements have brought to the marketplace to help battle account takeover activities, including real-time decisions, fraud detection tools, dynamic acquirer routing, identifying trusted users, and reduction in unnecessary account validation requirements.
 
Being alert to bots attacks through the PSD2 Strong Customer Authentication allows business owners to proactively be prepared to reduce fraudulent activities and account takeover attempts.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Nov 25th 2020 05:38. Viewed 358 times.

Comments