Core authentication methods

Customer authentication has rapidly evolved to address today’s threats and user expectations. Modern methods include:
Passwordless authentication

• Definition: Eliminates the need for traditional passwords, using alternatives such as passkeys, device trust, or biometrics.
• How it works: Customers verify their identity using secure cryptographic credentials linked to their device or account—often with biometric input or a one-time code.
• Benefits: Reduces password fatigue, eliminates credential reuse risks, and streamlines logins for a better user experience. Learn more about passwordless authentication at Entersekt.

Multi-factor authentication (MFA)

• Definition: Requires two or more verification factors out of the following:

o Something you know (such as a password, PIN)
o Something you have (such as a mobile device, hardware token)
o Something you are (such as a fingerprint, facial recognition)

• How it works: Users must provide multiple proofs of identity—for example, typing a password and approving a push notification or biometric scan.
• Benefits: Significantly reduces the risk of compromised accounts, potentially blocking up to 99% of attacks that rely on stolen passwords. Explore Entersekt’s authentication solutions.

Biometric authentication

• Definition: Utilizes unique biological traits like fingerprints, voice, or facial recognition.
• How it works: Devices verify physical attributes using secure sensors or cameras, tying access to the user’s inherent characteristics.
• Benefits: Highly resistant to phishing, negates credential theft, and improves user convenience.

Context-aware authentication

• Definition: Adjusts security requirements dynamically based on real-time context such as, device location, user behavior, and time of access.
• How it works: The system analyzes the context of each transaction and may request additional verification if suspicious activity is detected, while streamlining access for trusted behavior.
• Benefits: Strikes a balance between strong security and seamless experience. Learn about Context-aware authentication from Entersekt.

Benefits of strong customer authentication

For financial institutions

• Fraud risk reduction: Advanced authentication methods drastically reduce unauthorized access and fraudulent transactions .
• Regulatory compliance: Supports adherence to regulations like PSD2, GDPR, and other global data protection standards.
• Operational efficiency: Lowers support costs by reducing account compromises and fraud investigations.
• Customer trust: Enhanced authentication builds user confidence and strengthens digital channel adoption.

For users

• Superior security: Protects sensitive accounts and the exposure of personal data to attackers.
• Convenience: Passwordless and adaptive authentication streamline the login experience.
• Reduced identity theft: Multi-factor and biometric methods make it far harder for criminals to impersonate legitimate users.

How modern authentication reduces fraud

Modern authentication approaches—especially multi-factor, biometric, and context-aware solutions—are proven to cut fraud rates and mitigate identity theft:

• Multi-factor authentication: By requiring verification across multiple, independent factors, attackers can no longer succeed simply by stealing a password or device.
• Real-time risk analysis: Context-aware methods identify anomalous behavior, locations, or devices and escalate authentication requirements, thwarting fraudulent attempts in real time.
• Adaptive protection: Dynamic, AI-enhanced risk-based approaches continuously learn normal usage patterns, flagging suspicious activity and enforcing stronger checks as needed.

Leading organizations using MFA report up to 99% fewer account compromises than those relying solely on passwords, underscoring the effectiveness of a layered authentication approach.