Fraud caused by the compromise of trusted accounts was the hot topic at both the Merchant Risk Council European Congress last week in Dublin and the event in Las Vegas in March. eCommerce Merchants are starting to see types of fraud that have plagued financial services, enterprise, and Cloud for years. Fraudsters are now taking over online gaming, email, and social networking accounts and causing havoc and loss for these providers and their customers. Many of these sites responded by offering phone-based two-factor authentication, providing an additional layer of security to protect their users. The next target for this type of fraud is clearly eMerchants who must act quickly to protect their customers, their reputation, and their brand.
Fraudsters have typically focused on credit card fraud as an easier win with eMerchants. However, as merchants implement more sophisticated fraud tools, fraudsters are hijacking existing customer accounts that have a positive reputation to commit fraud. Merchants need to mirror the advanced authentication methods offered by businesses, such as, online banking institutions, email providers and social networking sites to combat this problem. Two-factor authentication not only benefits the user but it also protects eCommerce sites from being defrauded.
TeleSign is recognizing May as User Authentication Awareness Month to promote the need to offer users protection from account compromise. This month we will provide businesses and users with tips and tricks to safely interact and conduct business online. There are simple steps that can make a big difference to prevent abuse. Phone-based two-factor authentication is a simple and easy to deploy solution that provides peace of mind for both merchants and customers.
To learn more about two-factor authentication, visit www.telesign.com/solutions/2fa.