Consumer banking services that were once provided in person can now be delivered at a fraction of the cost using electronic channels. This decrease in cost, however, comes with an increase in risk, as it exposes financial institutions to outside threats such as fraudsters. Fraudsters target and exploit electronic channels for financial gain, most commonly targeting customers’ personal passwords in order to gain unauthorized access to their accounts before stealing the funds within them.
As these attacks on financial institutions evolve, customer confidence deteriorates. Meanwhile, as banks struggle to protect against these attacks, their performance becomes encumbered with rising administrative costs, thus discouraging the adoption and implementation of more efficient electronic systems. It is a vicious cycle.
As the means of fraud evolve, financial organizations simply must evolve with them. It is incumbent upon banks to update their outdated and obsolete security methods (such as personal passwords) with stronger, more current forms of authentication.
VASCO offers a variety of strong authentication solutions for the consumer electronic banking market, including:
- Software-only authentication
- Mobile authentication
- SMS authentication
- One-button hardware authenticators
- Smart cards