What Does SCA Protect Against

1. What Does SCA Protect Against?

2. The Second Payment Services Directive (PSD2) of the European Union mandates Strong Customer Authentication, or SCA, to have access to confidential digital financial banking information and conduct digital payment operations. Financial institutions safeguard against unauthorized access and uphold the confidentiality of financial transactions by mandating SCA for logins and transactions. In addition to standard username+password logins, SCA mandates using several types of authentication, such as one-time codes, biometrics, or security tokens, to confirm the user’s identity. According to Gemalto, now known as Thales DIS, the SCA has been “effective in averting more than 90% of fraud transactions,” according to the 2018 Data Breaches and Fraud Report. Merchants and retailers need to get strong customer authentication solutions for safety, security, and meetingcomplianceneeds. Strong CustomerAuthentication: What Is It? SCA is now an essential part of digital financial services and, consequently, a must for embedded finance applications on all platforms and in all situations. When it comes to the end user, SCA means having to submit multiple forms of authentication to access their financial accounts or make online payments. This will comprise “knowledge factors,” such as a password, “inherence factors,” such as a fingerprint or face recognition, and “possession factors,” the most popular of which is proving ownership of a particular mobile device with a one-time code. SCA was created to guard against fraud and illicit access to financial accounts. It makes it far more difficult for malicious users to access someone’s financial information or carry out unauthorized transactions since they would need to have many “factors” and use them in multiple steps. This also applies to unintentional user or program activities.

3. This additional layer of protection is crucial in the world of embedded finance, e-commerce, and for merchants, where financial services are all incorporated into a wide range of non-financial apps and websites. In these situations, it is necessary to conduct safe financial transactions more often and outside the conventional bounds of standalonebanks or payment applications. What Does SCA Protect Against? A sound SCA implementation protects against several potential financial concerns or unauthorized access scenarios in the digital world: Fraud: SCA combats fraud by confirming the user’s identity before approving a payment or login. Multifactor authentication is a requirement to prevent unauthorized transactions and, consequently, financialloss. Account Takeover: To warn customers and companies against unauthorized access attempts, security notifications and increased user awareness of authentication and verification interactions with financial apps are helpful. They can ensure prompt security measures are implemented, such as prohibiting unauthorized access to account information, even beforea malicious payment attempt is made. Phishing Attacks: SCA can lessen the effects of phishing attempts since it prevents access to sensitive data or payment operations, even if a password is compromised, by forcing the customer to provide several forms of authentication.

4. Man-In-The-Middle Attacks: Man-in-the-middle attacks, in which perpetrators try to intercept online communications to obtain unpermitted access to private data later, can be avoided by implementing modern multi factor authentication techniques in SCA. Such activities could be a component of an automatic malware attack meant to compromise the data of people or organizations. Along with lowering the risks mentioned above, SCA also lessens unintentional user error. Users must confirm that everything works as intended before completing financial transactions by incorporating steps into user experience (UX) paths that essentially ask, “are you sure?” for payment transactions and money progressions. Overall, SCA is a valuable instrument for protecting the confidentiality of financial transactions and safeguarding sensitive information since it helps protect against various payment hazards and risks associated with unauthorized access. When Must SCA Checks Performed? Whether to use multifactor authentication for SCA will rely on the implementation scenario and the following criteria: Information On Payment Accounts Is Accessible: Multifactor authentication allows users to access confidential financial data such as transactions made, card numbers, etc. This may be completed upon logging into the application, or maybe a “step up” is necessary when the user enters a secure financial workflow. When Must SCA Checks Be Performed?

5. Whether to use multifactor authentication for SCA will rely on the implementation scenario and the following criteria: Information On Payment Accounts Is Accessible: Multifactor authentication allows users to access confidential financial data such as transactions made, card numbers, etc. This may be completed upon logging into the application, or maybe a “step up” is necessary when the user enters a secure financial workflow. Payments: Secured multi factor authentication and authorization will be required for any financial transfers to third parties, including: Card payments (online using 3D Secure and in-person using Chip + PIN) Outbound wire transfers (OWTs) Sends or money transfers between cards and accounts with different identities. Administrator access: Within the parameters of the program consent framework, apply multifactor authentication for SCA to authentications and transactions made by administrators seeing payments account information and acting on behalf of account holders. Bottom Line: Your product and operations team will receive support from the strong customer authentication solutions as they adhere to these best practices to ensure that SCA successfully prevents unauthorized access, ensures the safety of financial transactions, and delivers a positive user experience.

6. Source URL: https://solizofirm.com/what-does-sca-protect- against/