Pandemic significantly changed consumer behavior and preferences. The boom in sales has led to a spike in eCommerce fraud in the retail space. Banks got pushed to upgrade their processes to meet these shifting demands. Schalk Nolte is CEO at authentication firm Entersekt. Nolte told PYMNTS that there is a distinct shift towards consumers transacting online more often. This requires banks to take care of those who previously did not transact online.
This forced financial institutions to implement innovative solutions. However, it also needs them to adopt extra authentication methods.
Capitec Bank, one of the largest retail banks in South Africa, partnered with Entersekt. The deal will involve implementing the firm’s latest solution.
Nolte explained, “Depending on what you do, where you’re coming from, how you hold the device or how you click your mouse, all of which are behavioral, we can determine the best authentication for a specific transaction in real-time and ensure that there is a balance between [digital] security and user experience.” Nolte said that many customers prioritize digital safety over convenience.
They also find it empowering to play an active role in authenticating their payments.
He said that empowerment builds trust. This can translate into a huge increase in transaction volumes. Nolte believes eCommerce fraud is always very lucrative. This is why old forms of cyberattacks like phishing are still around today. Nolte noted that is where context-aware authentication comes in as a safety net.
The process involves performing a real-time analysis of the context. This includes identity, type of device, or geolocation. This is to accurately determine the identity of the user and inform the appropriate security decisions.
This can remove friction from the authentication process. This means banks no longer have to make the difficult tradeoff. The behavioral analytics that NuData Security provides also helps Entersekt identify devices that got flagged for eCommerce fraud.
He added that fast identity online (FIDO) authentication helps to reduce reliance on passwords.