Report: Familiarity will Breed Confidence in New Online Authentication Methods
July 15, 2013
Passwords and other static authentication measures “have a foot in the grave,” according to a new report from payments research and advisory firm Javelin Strategy and Research. In “Online and Mobile Retail Payments Authentication: Preventing Fraud in the Age of Data Breaches and Malware,” The Pleasanton, Calif.-based consultancy stressed the need for more advanced authentication for online card purchases.
“Without a doubt,” said Javelin researcher Al Pascual, “the end is in view for passwords.”
Card-not-present fraud is expected to surge with the introduction of the EMV standard and, in addition to passwords, the report said other authentication methods like CVV and AVS are being rendered obsolete. Javelin said new technologies such as out-of-band one-time passwords, biometrics and other dynamic authentication methods will supplant the old ones when merchants are able to surmount unfounded fears of consumer backlash “to newer, more secure authentication measures.” Familiarity, the report said, will breed comfort and confidence, and merchants’ primary decision-making factor should be effectiveness.