Multifactor Authentication Will Bolster Customer Confidence in Mobile Banking

Contributor:

Todd Hawkins
Director, Biometric Identity Management and Mobile Security Solutions
Banking and Credit Services
CSC

With the number of smart devices growing to more than 3 billion worldwide, banks have potential for an unprecedented level of interaction with their consumers. Yet, with such convenient access to banking right at everyone’s fingertips, the big question seems to be, “What’s the holdup?”

Fear. A large portion of the smart device-carrying population maintains a healthy dose of reluctance to embrace mobile banking due to concerns with fraud and security. And rightfully so. The media is filled with stories of hackers, breaches and cyberattacks that would make even the most confident adopter of mobile technology more than a little nervous. Fairly recently one of the largest online gaming firms was hacked not once, but TWICE. A major token-providing security company and numerous banks also have been breached. How can consumers be confident in conducting transactions over a mobile device?

Adding to the concern is the Federal Financial Institutions Examination Council guidance that states single-factor authentication is no longer considered adequate for high-risk transactions. Passwords and PINs have long been the sole gatekeepers guarding a consumer from an anonymous thief who doesn’t even have to be physically present to empty their wallets. Multifactor authentication, which combines traditional security methods with more advanced means such as biometrics and GPS location, offers a new standard for fortifying the gates, but the field of providers is thin.

Banks that incorporate multifactor authentication into their process will certainly present a powerful challenge to any would-be thief. Simply running a script to guess a password or breaching a provider’s database to obtain such information will leave hackers substantially short of their goal. Introducing face and voice recognition biometrics will force thieves to go looking for easier prey.

Consumers will eventually gravitate toward a process that addresses their fears. And providers that choose to integrate a multifactor solution will be the ones that lead the charge.

What are your thoughts? Have you had any concerns with conducting transactions via a mobile device?