The Importance of Multi-Factor Authentication for the Financial Industry
In recent times, the financial industry has developed. However, technological advances are making the financial industry increasingly exposed to various challenges, such as Increasing and changing client expectations, shifting usage of digital systems, new rules, the growth of the newest technology, the existence of Fintech, and others. The existence of these obstacles makes the Bank must continue to provide the latest and more innovative financial services.
At the same time, companies in the financial industry must be more careful not to undermine customer trust. A digital system makes banks have to increase customer confidence in online transactions. Therefore, security is one of the most important factors in digital financial transactions, given that the financial industry has been one of the most targets of cyberattacks in recent years.
Multi-Factor Authentication is being used as a form of Cyber-attack defense.
Improving security in digital financial transactions can be using multi-factor authentication. In other words, multi-factor authentication (MFA) is the addition of a layer to secure a user’s account by providing two or more authentication factors to verify the user’s identity. Hacking usernames and passwords are fairly simple for cybercriminals. To make it difficult for cybercriminals to access accounts, added some authentication factors such as biometric voice or account security questions that the users only know. As a result, cybercriminals will find it more difficult to hack, and companies will avoid losses due to data theft.
Why is Multi-Factor Authentication required in the Financial Industry?
The financial industry has a lot of valuable information that can be made into sensitive information which cybercriminals could hack. Access to this sensitive data can be tightened by using MFA. A simple example of implementing MFA is when a customer uses an ATM to access a bank account, and the account owner employs MFA by combining what they know is a PIN with what they have as an ATM card. Other applications for an electronic transaction can be of various types. The authentication process must have more than one factor to tighten account usage. As a result, companies will avoid losing millions of dollars if cybercriminals access sensitive consumer information.
Examples of (MFA) Multi-Factor Authentication for the Financial Industry
Multi-factor authentication solutions are designed to protect accounts and transactions by using multiple authentication factors while still simplifying logging into an account. MFA solutions are easy to use, scalable, and reliable solutions. Here are examples of MFA that the financial industry can use:
- Software authentication
One of the authentication factors users have, authentication software makes the user’s mobile phone an authentication factor. Therefore, authentication notifications are only sent on mobile phones that are already registered.
- Mobile authenticators
It functions similarly to authentication software. The difference between mobile authenticators is only used for enterprise purposes. Make it easier for employees to access important applications that have sensitive data. Mobile authenticators will be implemented on mobile devices to access important applications on employee laptops or corporate networks.
- SMS delivery
This type of authentication is like SMS OTP. If the user wants to access an account, there will be an OTP SMS sent to the user’s number, and the user will put the code contained in the OTP SMS into the user’s account.
- Hardware authentication
This authentication process uses separate hardware such as card readers, USB, tokens, etc.
- Biometric authentication
Every human has its uniqueness in each individual. There are parts of the human body that can be an additional factor in authentication, such as fingerprints, face recognition, retina scans, and biometric voices.
- Push Notification
When the user logs in, the account will appear on the phone’s screen notification, and the user will complete the authentication procedure on the user’s mobile phone.
- Cronto
Cronto is a visual display like a QR code that will appear on the PC screen. Customers need to scan with a mobile phone to complete the authentication process.
Looking at the reasons for the importance of MFA to the financial industry and its various types, we can know that MFA is very important to implement because it will improve account security and can be applied according to needs. Implement MFA solutions with Phintraco Technology, a subsidiary of Phintraco Group. Phintraco Technology is a company that specializes in IT infrastructure. A variety of hardware and contact center-related technology solutions are available according to your company’s needs, one of which is the Multi-Factor Authentication solution.
Learn more information about multi-factor authentication by sending an email to marketing@phintraco.com
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