Why customer authentication processes will protect your business

Today’s world has become more digital than ever. Technology has sneaked into every aspect of our lives, with new digital trends appearing daily. The world has moved from using the Internet for online surfing and reading content to remote work and studying, e-commerce to online banking and telemedicine. Every day, more and more new businesses embrace digital transformation and transfer their business operations online, and this number will continue to grow with new developments in technology. But, increased online activity and its sensitive nature have also brought out an increase in the number of fraudsters and cybercriminals trying to exploit it. 

The reality of online dangers

An online security strategy is no longer an option; it needs to become a priority for every company if they want to protect the business and its customers. Fraudsters keep using technological advancements to evolve their malicious activities so they can trick even more people, and you need to ensure you don’t fall into their trap. Luckily, there are numerous strategies you can implement into your business to ensure it is protected from online dangers. You can stay ahead of the fraudsters by taking proper steps such as the ones mentioned in the SEON’s digital footprint guide or ensuring your cybersecurity tools are up to date and all critical files backed up. 

What are the most common online threats businesses face?

Fraudsters are never standing still, and they are constantly coming up with new types of attacks. According to NBC News, there are constant cyber attacks happening every 39 seconds online, and they are just getting more and more frequent. That comes up to about 2,244 attacks daily!

The most common cyber attacks targeting businesses are:

• Phishing attack
• Ransomware
• Malware
• Identity theft
• Account takeover
• Data Breach
• Chargeback fraud
• CNP fraud

While not all companies will face the same challenges, the impact of any of these attacks would be catastrophic for the business. The truth is that cyber-attacks and fraud attempts have more consequences than we think, from the financial ones to the reputational ones. 

What difference can customer authentication processes make? 

One of the most significant sources of danger for a business are its customers. To be more specific, fraudsters and cybercriminals pretending to be legitimate customers so they can accomplish their notorious actions. This is why cybersecurity strategies need to concentrate on consumer authentication and identity security to ensure their customers are actually who they say they are. 

Fraudsters and cybercriminals’ favorite types of attacks are identity theft and account takeover because they can do double damage with them. With a well-thought-out attack, they can exploit customers and businesses simultaneously and disappear before anyone notices anything wrong. Traditional authentication processes are no longer enough, as fraudsters are getting better and better in circumventing them. By implementing proper authentication processes, businesses would be able to stop them before they can do any damage. 

There are two most common types of customer authentication processes that can help you protect your business; digital fingerprinting and multi-factor authentication.

Digital fingerprinting

Digital fingerprinting is a unique way of using your customers’ online history to know more about them. This helps you determine if the users are who they say they are and to recognize any red flags that might indicate a fraudulent attempt. For example, you might discover that a user has no other online presence and their email has just been created, which certainly raises some suspicions. Noticing this early on allows you to take the necessary steps to investigate it and react on time.   

Multi-factor authentication

Multi-factor authentication can help you prevent fraudsters from accessing your systems by requesting them to provide additional verification to confirm they are who they say they are. Microsoft suggests implementing MFA as it can block over 99% of account takeover attacks or bulk phishing attacks. It even compliments digital fingerprinting perfectly since it can help you answer the possible concerns that have come out about the user while using digital fingerprinting. 

The most important thing about both of these methods is that they can do it all without causing user friction that some other ways would do. There is nothing customers hate more than lengthy processes, especially when they are trying to complete a purchase or access some service. Digital fingerprinting can get you more information about the user without them having to answer various unnecessary questions, leaving you with happy and safe customers. 

The risk of fraudulent behavior is constantly growing, but so are the technological advancements that help you stay ahead. Use them and protect your business.