Page 38 - Cyber Warnings

While security threats continue to mount, consumers continue to demand convenience and
functionality, a balance must be maintained. The need for this balance is driving nearly 80% of
financial institutions to invest in technology solutions that boost customer engagement and
bolster security. Often these investments are diametrically opposed, either increasing the risk
profile of an institution by making consumer access more convenient, or increasing account
security at the expense of decreasing consumer engagement. Solutions must be found that
don’t compromise the ideal state – easy to use and secure.

In devising such solutions, we need to move beyond the traditional methods of consumer
identification that use single points of static data to predict risk. We’ve relied too long on device
identification, data element matching, and static usernames and passwords to define legitimate
access. Having all these elements match up in an account application, login or transaction does
not mean that interaction is safe and inversely, having anything fail to match up should not
remove all faith that an interaction is valid. Attempts to add dynamic elements, like one-time
passwords and SMS text messages, to the authentication equation have traditionally met
consumer confusion, backlash, and rejection. It simply adds too much friction.

While it appears that we’ll be stuck with an authentication system that is based on easily
guessed usernames, widely stolen passwords, and device IDs made more uncertain in a mobile
focused world, there’s hope. Layering passive biometrics and behavioral analytics atop existing
authentication solutions can maintain a frictionless, fast and responsive customer experience,
and still greatly increase consumer account security.

But why stop at security? When financial institutions know who their customers really are, they
can offer a streamlined user experience and tailored promotions, further building customer
engagement and brand trust. Institutions win because they can trust who is logging in and
customers win because they have fast mobile experience that is as secure as walking into the
bank itself.

About The Author

Robert Capps is the vice president of business development for NuData
Security. He is responsible for developing and nurturing strategic
alliances, partnerships and channels.

Robert is a recognized technologist, thought leader and advisor with over
twenty years of experience in the design, management and protection of
complex information systems – leveraging people, process and
technology to counter cyber risks. In his previous role at RedSeal as a senior director, Robert
was responsible for technical, security and customer operations. Prior to RedSeal, Robert was
senior manager, global trust and safety at StubHub. Robert can be reached online at Twitter
@rwcapps or via www.nudatasecurity.com .

38 Cyber Warnings E-Magazine – April 2016 Edition
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