Now that businesses have seamlessly integrated technology into their daily operations, tasks and responsibilities are easier to perform. Of course, the digital realm is not immune to threats that could be disastrous to a company, which is why every establishment should have security measures set for their online systems.
One of the most common identity authentication solutions is knowledge-based authentication (KBA). Sometimes referred to as knowledge-based verification (KBV) or “out of wallet” questions, this customer identification program generates questions frompublic and private data sources, government databases, credit reports, and financial history.
KBA has been a key identification tool in the financial services industry. However, it is starting to lose its edge, and more companies are shifting away from it for better solutions. After all, simply asking the user where they lived on a particular date is just as effective as a simple password. Like the speedy progress of technological advancements, fraudsters and other cybercriminals are evolving to bypass loose security systems easily.
If you’re one of those businesses still operating a KBA system, it’s time to look for knowledge-based authentication alternatives.
The Problem With Knowledge-Based Authentication (KBA)
The questions generated by KBAs are pretty basic and are readily available online. Social media lets people display their information to the public, including phone numbers, addresses, and birth dates, which are typically included in KBA questions. Knowledge-based authentication does not come with additional security measures to protect against previous data breaches. Moreover, bots are programmed to collect information easily and answer questions with alarming speed and accuracy.
What Better Alternatives Are There?
Apart from requiring legitimate users to remember every detail of their personal lives to answer KBA questions, this old identification system has a poor defense against full-scale attacks. The insecurity of KBAs makes them unfit for business operations and may violate compliance regulations. Fortunately, many new alternatives are more effective in identifying legitimate users from frauds.
The most basic form of authentication twice stronger than KBA, ID verification requires scanning the user’s government-issued ID.
Mobile Phone Verification
The capabilities of mobile devices are almost limitless. Using mobile phones, you can verify a user through biometric authentication and audit trail for safer high-value transactions. Mobile verification combines several other factors such as fraud detection, SIM swapping, and device tenure.
The steps for identity verification are similar to that of ID verification, except it involves comparing the presented government-issued ID with a real-time user selfie.
Identity as a Service (IDaaS)
Another effective verification system is the identity as a service (IDaaS) system. This authentication service is cloud-based and is operated by a thirdparty instead of in-house IT teams. IDaaS aims to verify users claiming to be whom they are through multi-factor authentication, requiring users to submit multiple authentication factors to access networks.
authID is an award-winning provider of efficient authentication and security solutions for firms and enterprises. Visit their website https://authid.ai/ or contact +1 (516) 274-8700 for more information.