BioCatch is pitching its behavioral biometrics solution to financial institutions that need to comply with the incoming PSD2 requirements. PSD2 will go into effect in the UK in March of 2022, and includes a Strong Customer Authentication (SCA) provision that states that financial institutions must use multi-factor authentication to verify parties in online transactions.
Behavioral biometrics are one of the factors that organizations can be used to fulfill those obligations. BioCatch has already delivered solutions for many financial institutions, and is now working with its integration partners to implement the technology for a new wave of organizations ahead of the PSD2 deadline. Those integration partners are access control and online fraud prevention specialists.
According to BioCatch, behavioral biometrics is preferable to other forms of authentication because the technology operates passively in the background, and therefore provides a high level of security while removing friction from the authentication process. It also noted that the March 2022 deadline is an extended deadline. That means that financial institutions have a chance to prioritize both the customer experience and fraud prevention, and can use the extra time to install a more comprehensive security system.
“This is exciting news, and excellent timing,” said Neira Jones, an independent advisor for the payments industry. “The deadline extension to 2022 gives financial institutions an opportunity to not only focus on compliance, but also prioritize reducing friction to improve the customer experience as part of a holistic payment fraud management strategy.”
In the meantime, BioCatch will be hosting a Live Discussion Series on LinkedIn to educate financial institutions about PSD2 and SCA compliance. The first will take place on Wednesday, July 28, at 10 a.m. ET, and will address the advantages of behavioral biometrics in that regard.
BioCatch was named as an Overall Leader in KuppingerCole’s most recent Leadership Compass for Fraud Prevention report. The company has also warned that credential stuffing attacks have become more sophisticated in the past few years.
July 26, 2021 – by Eric Weiss