Combat fraud and friction in digital banking with context-aware authentication

Prevent phishing, account takeover fraud, SIM-swap fraud with a multi-layered, context-based authentication solution.

Digital banking is now a standard, but as security measures evolve, so do fraudsters’ tactics. Phishing, account takeovers, and SIM swaps remain persistent threats, eroding customer trust and exposing financial institutions (FIs) to compliance risks. Banks must ensure their fraud prevention strategies keep pace – not only to protect users, but also to maintain regulatory compliance and a competitive advantage.

5 Fraud prevention technologies that will save your financial institution direct loss

A seamless and secure authentication experience is essential to customer satisfaction and retention. However, traditional authentication methods often introduce friction, frustrating users and negatively impacting the digital banking experience.

ebankIT, in partnership with Entersekt, offers a context-based authentication solution that enhances security without compromising convenience. By intelligently analyzing contextual data, this approach improves the user experience, streamlines interactions, and defends against real-time fraud – all while supporting digital transformation efforts.

For banks, the benefits extend beyond security. A modern, frictionless authentication process strengthens customer trust, increases engagement, and ultimately improves the bottom line. Additionally, easy integration ensures a smooth deployment without disrupting existing infrastructure.

As the financial landscape continues to evolve, adopting advanced authentication methods isn't just about preventing fraud – it's about positioning your institution for long-term success. Here are five technologies inherent in our context-based authentication solution that can secure your FI’s standing both now, and in the future.

1. Multi-factor authentication

Bypass vulnerable usernames and passwords in high-risk use cases with a multi-layered authentication solution that uses two to three identifying factors:   

• Knowledge factor: Username or password 
• Possession factor: Something that the user has—a token or mobile device (e.g. mobile phone or tablet)—that may be used to generate a one-time password
•  Inherence factor: Something the user is, such as a fingerprint or face scan, confirming the identity of the user.

MFA does more than secure logins; it can protect the entire user journey. Peer-to-peer (P2P) payments that carry a higher risk, for example, can also be subject to step-up authentication measures, layered with MFA for added security. 

Furthermore, MFA provided by Entersekt enables users to authenticate using their preferred methods, while creating consistency across channels.

2. Mobile push notifications

Allow your banking account holders to authenticate their banking transactions in real-time using a mobile device. Replace the existing one-time password (OTP) system during high-risk Internet banking transactions with an interactive pop-up on your mobile banking app.

If a transaction is not legitimate, users can simply click the reject button displayed and the transaction will not be processed, stopping the attempted fraud in its tracks.

If a user approves the transaction, it goes through with minimal disruption to the user’s journey, while reassuring them that their bank takes active measures to protect them from fraud.

3. Passwordless biometric authentication

Biometric authentication uses unique biological traits like fingerprints or facial recognition to verify a user's identity. It is one of the most convenient methods of authentication while being highly secure and far more challenging for fraudsters to duplicate.

Traditional methods, such as usernames, passwords, and OTPs, are less secure because they can be stolen or intercepted.

Furthermore, research indicates that consumers prefer biometric authentication, with one in three users reporting that having to remember multiple usernames and passwords is highly problematic for them.

4. Secure, frictionless logins

Browser or app ID, provided by Entersekt, is the only solution of its kind to enable frictionless, secure logins. Advanced cryptography silently signs the transaction, without requiring any user intervention, elevating the user experience while prioritizing security.

On average, Entersekt’s solution enables 71% frictionless logins. Users benefit from fast, easy access to their digital banking accounts – whether via their browser or via their app – safe in the knowledge that their bank has their security in check.

5. An all-in-one, context-based approach

Entersekt’s multi-layered, context-based solution – Context Aware™ Authentication – allows financial institutions to uniquely identify customers through their banking apps while providing them with robust digital security and integration into third-party services. 

Context Aware™ Authentication leverages a broad range of features including:

• Strong device and browser identification
• End-to-end protection
• Multi-factor and out-of-band authentication
• Background geolocation checks
• SIM-swap protection

These multiple layers of defense are employed in different combinations to combat fraud and offer comprehensive 360-degree protection to your banking users.

Key benefits of modern authentication methods

Combating fraud in digital banking requires a multi-layered approach that balances security with user experience. Financial institutions like yours can significantly enhance their fraud prevention strategies by leveraging innovative solutions from providers like ebankIT and Entersekt.

ebankIT and Entersekt: The best of both 

It’s clear that combating fraud in digital banking requires a multi-layered approach that balances security with user experience. Financial institutions like yours can significantly enhance their fraud prevention strategies by leveraging innovative solutions from providers like ebankIT and Entersekt.

With its core-agnostic and modular architecture, ebankIT enables financial institutions to adapt, scale, and introduce new features to meet evolving security needs. 

Meanwhile, Entersekt’s advanced authentication solutions offer comprehensive protection against fraud, reducing operational costs and ensuring seamless user experiences across all channels.

By integrating these technologies, financial institutions can fortify their defenses, prevent fraud losses, and build long-term trust with their customers.

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