TOP 5 most reliable and user-friendly authentication methods in online payments - Cybersecurity ASEE (2024)

April 4, 2022

Category:

Online payments and fraud prevention, Products

- Online payments and fraud prevention

TOP 5 most reliable and user-friendly authentication methods in online payments - Cybersecurity ASEE (1)

TOP 5 most reliable and user-friendly authentication methods in online payments - Cybersecurity ASEE (2)

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The interdependence of security and user experience is an everlasting topic. A common denominator that ties these two together is the authentication method used during online payment processing. Explore which authentication methods provide a seamless user experience while keeping you secure from fraudulent attacks.

The interdependence of security and user experience is an everlasting topic. A common denominator that ties these two together is the authentication method used during online payment processing. Explore which authentication methods provide a seamless user experience while keeping you secure from fraudulent attacks.

Authentication methods in a nutshell

The definition of authentication can be explained as a process of identifying a user requesting access to a particular service. Until recently, simple credentials in the form of a username and password would suffice, but with today's security standards, we need something much stronger.

Different business requirements demand different security levels, achieved by carefully choosing or combining various authentication methods available. When it comes to user experience, it plays a significant role in user satisfaction during online payment processing. Therefore, the authentication method applied must provide convenience and security at the same time. If the authentication process does not offer convenience and runs smoothly, it causes high cart abandonment rates. On the other hand, if the authentication does not provide appropriate security measures, the threat of fraudulent activities involving payment cards rises and results in chargeback costs.

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Balancing between security and user experience is a challenge, but we at ASEE know how to approach this issue. The answer lies in Strong Customer Authentication (SCA) that enables various authentication methods tailored to the user's needs.

PSD2 driving innovation in online payment security

As a part of the PSD2 regulation from September 2019, Strong Customer Authentication (SCA) requirement is in force. SCA presents an additional layer of security in online payments and is based on at least two authentication factors from the following categories:

  • knowledge (what the cardholder knows, e.g., PIN, password),
  • possession (what the cardholder has, e.g., phone, hardware token),
  • inherence (what the cardholder is, e.g., facial recognition, fingerprints).

This means that stakeholders needed to get creative and adopt a variety of authentication methods available for the end-user in order to be able to process a seamless and secure online payment.

Our top 5 authentication methods

We prepared a comprehensive list of authentication methods that provide both security and convenience during the processing of an online payment. Let's dig in!

1. Biometric Authentication Methods

Biometric authentication relies on the unique biological traits of a user in order to verify their identity. This makes biometrics one of the most secure authentication methods as of today. Additionally, it causes less friction during the authentication process in comparison to previously mentioned methods, making for a great user experience. Most common identifiers include fingerprint scans, facial recognition, and voice-based identification.

PROS

Hard to spoof – biometric identifiers such as fingerprint and retina are unique by definition for each individual. Also, when combined with Dynamic linking (i.e., adding additional transaction data in authentication data), spoofing is almost not feasible.

Simple to use – does not require memorizing various PINs and passwords, a straightforward authentication process.

Fast and reliable – biometric authentication provides more security and is less time-consuming.

CONS

Privacy concerns – one of the major issues users have with this method is privacy concerns. Even though this feeling is very subjective, it prevents a significant number of cardholders from using it. Biometric data are stored in a trusted environment, encrypted and inaccessible to regular operating systems.

Possible errors – errors including false acceptance and false rejection of an authentication attempt.

2. QR Code

QR code authentication is typically used for user authentication and transaction validation. A typical flow for transaction verification starts with the user logging into their internet banking web application and opening a payment order. The internet banking application offers the user to process this payment using a QR code presented on the screen. To process the payment, the user needs to scan the QR code with their smartphone using authenticator software (can be apart of their mobile banking application). To finalize the payment, the user is presented with transaction details and, upon inspecting the validity of the showcased data, the user additionally confirms the online payment.

PROS

Simple to use – the authentication process is straightforward.

2FA proof – easily combines with other authentication factors for increased security.

No additional hardware – independent from third-party hardware.

CONS

Lack of familiarity – the general public is not widely familiar with this particular authentication method, resulting in a possible poor customer experience.

Device dependence – requires the use of smartphones alongside correct reader software capable of scanning the QR code.

3. SMS OTP

This simple yet effective authentication method involves sending an SMS message to the user's mobile phone, containing a one-time password used for finalizing the authentication of online payments.

PROS

Simple to use – the authentication process is straightforward.

Access – in case of suspicious activity, only the user who has the device in their possession can verify the transaction's validity by entering the received OTP.

Familiarity – SMS OTP is one of the oldest forms of two-factor authentication, making it widely accepted by both users and security protocols.

CONS

Data network requirement – if a user is unable to use their phone network (e.g., the connection is down), they won't be able to receive the OTP. Also, SMS OTP delivery might not happen in real-time, causing a delay, and the authentication time could run out.

Compliance – SMS OTP authentication is not entirely PSD2 compliant, e.g. if a mobile phone is not in possession of its rightful owner, the fraudster can easily receive SMS OTP on the stolen device and process a transaction.

4. Push Notification Authentication Method

A push-based authentication system sends a notification to an app on a user's device, informing them about an authentication attempt. The user is able to inspect the details of the authentication attempt, and based on their knowledge about an, e.g., the transaction taking place, either confirm or deny request verification.

PROS

Simple to use – if the authentication details do not raise any suspicion, the user simply confirms the authentication request.

Efficient fraud protection – push-based authentication enables simple implementation of Dynamic linking, which proves to be efficient in preventing phishing and MITM (man-in-the-middle) attacks.

Low cost – this method leverages user's existing mobile phones, eliminating additional hardware costs and maintenance costs.

CONS

Data access – notifications are sent through data networks, so in order for this method to be applied, the user must have data access.

Security issues – the user might accidentally approve a fraudulent transaction because of our habit of automatically approving incoming notifications.

Dependency – Push notification authentication demands having an appropriate mToken application installed on a user's device, as well as mToken activation, i.e., it requires certain actions to be undertaken in order for the authentication method to be available to the cardholder.

5. Behavioral Authentication Method

Behavioral authentication verifies a user's identity based on unique patterns recorded during interaction with devices (e.g., smartphone, tablet, computer). Identification factors include everything from the angle at which the user is holding their phone to pressure applied while typing. This type of authentication method allows for a genuinely frictionless experience without having to worry about the level of security it is providing the user with.

PROS

Simple to use – straightforward authentication process.

Hard to spoof – just like the fingerprint and retina are unique by definition for each individual, the same applies to the way a user interacts with their device.

Great user experience – the authentication process is passive, and friction is out of the equation.

CONS

Case sensitive – can be affected by the user's physical state and emotional behavior.

Invasion of privacy - major issue users have with this method is privacy concerns. What disturbs users the most is not knowing what data is actually collected, who has access to it, and how it is going to be used in the future. How far is too far?

TOP 5 most reliable and user-friendly authentication methods in online payments - Cybersecurity ASEE (3)

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TOP 5 most reliable and user-friendly authentication methods in online payments - Cybersecurity ASEE (2024)

FAQs

Which of the following authentication methods is most reliable? ›

1. Biometric Authentication Methods. Biometric authentication relies on the unique biological traits of a user in order to verify their identity. This makes biometrics one of the most secure authentication methods as of today.

What is the best method of authentication? ›

More Secure: Biometrics. Biometric authentication methods rely on something you are. That makes them hard to steal, difficult to misplace or share, and impossible to forget. Users are comfortable with them, and they increasingly come built-in on our devices.

What is the most common method used to authenticate a users identity? ›

Password-based authentication

Passwords are the most common methods of authentication. Passwords can be in the form of a string of letters, numbers, or special characters. To protect yourself you need to create strong passwords that include a combination of all possible options.

What is a common method of authentication in cybersecurity? ›

Password Based Login:

The most commonly utilized regular login authentication system that you will employ on a daily basis while utilizing an online service is password-based login. You need to input a combination of your username/mobile number and a password when using the Password-Based Authentication technique.

Which authentication is better? ›

With token-based authentication, the token is stored on the client side, making it much more secure. In addition, since there's no need to store tokens on the server, scaling becomes much easier. Overall, token-based authentication offers better security and performance than other methods.

What is the most secure authentication mode? ›

The WPA Wi-Fi protocol is more secure than WEP, because it uses a 256-bit key for encryption, which is a major upgrade from the 64-bit and 128-bit keys used by the WEP system. WPA also uses the Temporal Key Integrity Protocol (TKIP), which dynamically generates a new key for each packet, or unit of data.

What is the most secure way to allow authentication? ›

Biometric authentication uses unique physical characteristics, such as fingerprint or facial recognition for identification. This type of authentication is highly secure and convenient (no one forgets their fingerprint), though it requires specialized hardware that can be costly to install and integrate.

Which is the strongest authorization mechanism? ›

Inherence is considered the strongest authentication factor because it asks users to confirm their identity by presenting evidence inherent to unique features. Common inherence factor examples include biometrics like fingerprint scans, retina pattern scans, and facial recognition.

Which type of authentication should you use? ›

Multi-factor authentication is preferred, as it is much more difficult for an intruder to overcome. With just a password, an attacker only has to have a single attack skill and wage a single successful attack to impersonate the victim.

What is the least secure authentication method? ›

While common, PAP is the least secure protocol for validating users, due mostly to its lack of encryption. It is essentially a routine log in process that requires a username and password combination to access a given system, which validates the provided credentials.

What is the simplest authentication method? ›

HTTP Basic authentication is a simple authentication method for the client to provide a username and a password when making a request. This is the simplest possible way to enforce access control as it doesn't require cookies, sessions or anything else.

Which is the most accurate definition of authentication in cybersecurity? ›

What is authentication in cybersecurity? Authentication is the process of confirming the identity of a user before authorizing access to computer networks or systems. This is usually the initial step in the cybersecurity process.

Which authentication mode is more secure? ›

Windows Authentication is the default authentication mode, and is much more secure than SQL Server Authentication.

What is the best network authentication method? ›

WEP, WPA, WPA2 and WPA3: Which is best? When choosing from among WEP, WPA, WPA2 and WPA3 wireless security protocols, experts agree WPA3 is best for Wi-Fi security. As the most up-to-date wireless encryption protocol, WPA3 is the most secure choice. Some wireless APs do not support WPA3, however.

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