As the online payments sector rapidly evolves, so too does payment fraud. In 2014, payment fraud in the UK alone increased by 10 per cent to £331 million as weak user authentication solutions among payment service providers (PSPs) allowed hackers to commit billions of Euros worth of financial damage.
As a result, the European Banking Authority (EBA) has released a set of guidelines to ensure a secure framework is created to protect customers’ internet payments. With the introduction of these new principles, pressure is growing on PSPs to deploy stronger authentication technology to identify legitimate users and take fraudsters out of the game.
One of the EBA’s key recommendations is that PSPs should implement “strong authentication” for customers when registering for new accounts, transferring money and making card payments.
The good news is that new techniques, particularly in the mobile sector, provide a way to achieve strong authentication and continuous protection, with minimal friction for end users.
In order to educate and help to promote discussions on this topic, TeleSign in conjunction with Goode Intelligence just released a paper to serve as an initial guide and helpful resource to those wrestling with this new regulation.
These guidelines are sure to create a surge of innovation, the potential of which will need to be assessed by the PSPs and merchants who are affected. By working with trusted partners with deep experience in the authentication market, we believe the business impacts of this new legislation can easily be assessed and solutions rapidly identified and deployed.
To download a free copy of the White Paper, “Meeting EBA Guidelines for Internet Payment Security with Mobile-Based Authentication,” click HERE.”