How Risk-Based Authentication Enhances Online Security

Before a customer makes an online transaction with a credit, debit card, or any other mode, he has to go through the authentication process. Most payment gateways have a stringent policy for risk-based authentication. Moreover, this authentication process keeps getting more complex with the increase in the chances of potential risks. Most of the time, you must have seen e-commerce payment processor systems have an elaborate authentication process. The reason behind this is better online security to ensure customer data, information, and finances remain safe in every circumstance. 

What is risk-based authentication?

It is a security system that uses data to identify the risk levels involved with a specific authentication request. This type of adaptive authentication enables the organizations to determine the potential risks linked with the attempt where the user shares location, history, and more to get access. The factors that risk-based authentication analyze are:

• The kind of system through which the user has logged in, whether it is a computer system or mobile device.
• The time zone from which the user is trying to log in.
• Whether the person has logged in from a known IP address or it is a foreign network.
• Whether the data file is relevant to the company or is merely a useless piece of information

After carefully checking these factors, the risk-based authentication process finishes, and the user gets desired access. 

Benefits of Risk-based authentication

The authentication procedure in the e-commerce payment processor has to be fairly balanced. The company has to set it up carefully, ensuring that the user doesn’t feel the added burden, but the transactions remain safe too. Some of the benefits of this authentication process are:

• It provides a more secure environment for every user by only allowing authorized access to the systems. This prevents unauthorized access to systems, keeping them safe for genuine users. 
• If the financial institute chooses a reliable setup, it is convenient for them to configure it into the system. Moreover, it allows you to customize configurations according to your specific requirements.
• Risk-based authentication significantly helps with fraud prevention. When all the assessment and analysis happens at the time of authentication itself, the chances of fraud get reduced. 
• When the user follows a stringent authentication process, it assures him that the company cares about its users. He will instantly feel safe and get inclined towards engaging with the business. 
• When you use the authentication process in conjunction with cloud-based services, it is actually a cost-effective procedure. The traditional methods are complex and require lots of time, effort, and money. So, it is best to use this process to save resources. 

There are countless other benefits of authentication processes based on risks. Companies or financial institutes should find a platform to help them with an effective and efficient authentication process. Integrate it into their system, and rest assured that there will not be any potential frauds. Once you follow it religiously, you will see a significant increase in your revenue, customer base, and market reputation.