Discover the emerging authentication trends that will influence how individuals engage with financial services, utilise digital banking, and authorise payments. The landscape of digital financial services is in a state of constant transformation, and customer authentication is no exception to this dynamic evolution. As we look ahead to forthcoming legislative changes and the latest advancements in technology, new challenges consistently emerge in establishing secure online identities for customers. Consequently, financial institutions must take the initiative to explore innovative solutions.
To assist you in navigating this intricate terrain and identifying necessary modifications, we have compiled a comprehensive overview of five key authentication trends anticipated for 2024.
The Growing Adoption of Passkeys (FIDO2)
With the increase in phishing, vishing, and smishing attacks posing significant threats, financial organisations are actively assessing authentication technologies designed to withstand these types of attacks from the ground up. FIDO2 stands out as an exemplary solution in this context. Although it initially faced hurdles in gaining widespread acceptance, Apple has played a pivotal role in mainstreaming FIDO2 by championing passkeys. This password-free login approach operates on the principles of the FIDO2 standard behind the scenes. By implementing passkeys, financial institutions can create seamless native login experiences on their websites; for instance, passkeys simplify access for web banking users and enable customers to manage their digital banking needs or approve payments using just their iPhones—eliminating the necessity for any additional mobile applications.
Decentralised Identity
As we delve deeper into these trends throughout 2024 and beyond, it becomes clear that understanding these shifts will be crucial for both consumers seeking secure access to their finances and organisations striving to protect sensitive information while enhancing user experience.
As Web3 concepts gain traction, we are witnessing the emergence of innovative authentication standards, such as the W3C’s verifiable credentials and verifiable presentations. This shift towards decentralised identity is poised to transform traditional authentication methods entirely, empowering individuals with remarkable control over their identities and the specific information they choose to disclose to others.
In essence, decentralised identity enables users to store their identification proofs—essentially digital ID documents—within a mobile wallet application. This functionality allows them to verify their identities seamlessly when engaging with both online platforms and physical services. The momentum behind this movement is further bolstered by governmental initiatives, notably the impending European legislation concerning the European Digital Identity Wallet (EUDIW).
The EUDIW is designed to operate in all European Union member states, leveraging decentralisation principles that facilitate cross-border usability. To encourage widespread adoption among users, large enterprises—including banks—will be required to accept this digital identity wallet as a standard practice.
Preparing for PSD3
As the PSD3 legislation begins to take shape, it is poised to usher in significant modifications concerning Strong Customer Authentication (SCA). Given that SCA is a requirement for financial institutions managing payment accounts, these entities are tasked with adapting their authentication mechanisms to align with the forthcoming changes. This evolution is not merely a procedural adjustment; it represents a crucial shift in how organisations will secure customer interactions moving forward.
The Emergence of Post-Quantum Cryptography (PQC)
At the heart of contemporary authentication frameworks lies cryptography, which has long been the bedrock of secure communications and identity verification. For many years, existing cryptographic standards have functioned effectively, necessitating only sporadic algorithm updates. However, a formidable new adversary has emerged on the horizon: quantum computers. These advanced machines operate on entirely different computational principles and possess the potential to dismantle traditional asymmetric cryptographic methods like RSA and Elliptic Curve Cryptography.
The implications of this technological leap are profound; many of our current identity verification methods—including electronic signatures that rely on established cryptographic techniques—could soon be rendered unreliable. Although today’s quantum computers do not yet possess the requisite power to threaten well-designed cryptographic systems significantly, cybersecurity agencies and standardisation organisations are already advocating for preparedness against this impending challenge. In fact, NIST has recently proposed that three novel cryptographic algorithms be standardised by 2024 as part of this proactive approach to safeguarding our digital infrastructure against future risks posed by quantum computing advancements.
This development brings promising advantages for financial institutions; by integrating the EU Digital Identity Wallet into their systems, banks can significantly streamline processes such as account openings and loan applications. Instead of enduring lengthy waits that can stretch into minutes or longer, customers will have their requests processed in mere seconds. This reduction in friction not only enhances customer experience but also offers banks a compelling reason to invest in this transformative technology: quicker customer acquisition and onboarding processes stand out as invaluable benefits in an increasingly competitive landscape.
Revival of Hardware Authenticators
The year 2023 marked a significant turning point in the realm of artificial intelligence, unveiling a series of groundbreaking technological advancements. While these innovations bring forth an array of exciting opportunities, they also usher in a host of new challenges and vulnerabilities. One particularly concerning development is the rise of AI-driven deepfakes, whether through facial recognition or voice mimicry, which pose serious threats to the integrity of remote biometric authentication systems.
In light of these evolving threats, organisations must critically reassess their dependence on user-generated information inputted via laptops and smartphones—such as PINs and passwords. Cybercriminals are increasingly leveraging commoditised mobile malware alongside legitimate remote desktop applications like AnyDesk and TeamViewer to infiltrate systems. This enables them to intercept sensitive information with alarming ease, stealing passwords or PIN codes and subsequently gaining unauthorised access to accounts.
Although many current fraud schemes are relatively straightforward to detect, the emergence of AI technology allows for the creation of highly personalised scripts explicitly tailored for individual victims. This capability significantly heightens the success rate for attacks that already have a troublingly high level of effectiveness. In response to this evolving landscape, security-conscious consumers are likely to seek out superior protection measures; many may turn towards dedicated authenticator devices as a more robust alternative.
Utilising such devices introduces a more substantial possession-based component into multi-factor authentication processes. The advent of FIDO2 authentication is fostering progress toward standardisation in this domain, offering digital banking customers greater flexibility in selecting their preferred authenticator device.
As we prepare for an era characterised by emerging authentication technologies, it is worth noting that our solutions are designed for simplicity in deployment while ensuring adherence to stringent compliance requirements. They promise not only enhanced security but also a seamless user experience—an essential combination in today’s fast-paced digital landscape.
Maxthon
Maxthon has made significant strides in enhancing the security of web applications through a holistic approach that prioritises both user safety and data protection. The browser utilises advanced encryption technologies, which act as a robust barrier against unauthorised access while information is being transmitted. As users interact with various web applications, their sensitive data—such as passwords and personal details—gets encrypted and securely dispatched, making it exceedingly difficult for malicious actors to intercept or misuse this information.
In addition to its formidable encryption features, Maxthon demonstrates its commitment to security through regular updates. The development team is proactive in identifying existing vulnerabilities and swiftly rolling out patches to mitigate these risks. Users are strongly encouraged to activate automatic updates, which allows them to seamlessly benefit from the latest security improvements without having to take any extra steps.
Another crucial element of Maxthon’s offerings is its built-in ad blocker—a vital resource for user protection that filters out potentially dangerous advertisements that could jeopardise their safety. By removing unwanted content, Maxthon significantly lowers the chances of users becoming victims of phishing schemes or inadvertently downloading malware via drive-by attacks.
Phishing protection is also a key pillar of Maxthon’s security architecture. The browser actively identifies suspicious websites and alerts users before they navigate toward these potentially risky sites. This proactive strategy serves as an additional layer of defence against cybercriminals who seek to exploit unsuspecting individuals for their personal information.
For users who prioritise privacy during their online activities, Maxthon offers privacy mode options designed specifically for this purpose. When activated, this feature ensures that no browsing history or cookies are stored during private sessions, thereby providing users with enhanced confidentiality as they navigate the internet
