What is Browser Authentication, and how does it work?
Browser authentication verifies a user’s identity through their web browser, enabling secure access to online banking services by turning their browser into a trusted possession factor. This type of authentication uses existing browser capabilities, such as device recognition, certificates, and FIDO-enabled passkeys, to make logins more convenient for customers.
For example, when a customer logs in to online banking, the browser may use stored credentials, cryptographic keys, or biometrics to authenticate the session. If the login attempt seems suspicious, the financial institution’s (FIs) fraud prevention measures may trigger additional security measures like multi-factor authentication (MFA) to prevent unauthorized access.
How does Browser Authentication enhance banking and payment security?
Browser authentication is a more secure option for FIs than relying on passwords, reducing the risk of fraud attacks like phishing and credential stuffing. A few key security benefits include:
Device binding: Authentication tokens are linked to specific devices, stopping unauthorized access.
Session integrity: Secure cookies and token-based authentication help prevent session hijacking.
Transaction authentication: With peer-to-peer (P2P) payment fraud becoming more prevalent, FIs that verify transactions before approval can strengthen their banking and payment security.
What challenges do banks face when relying on traditional authentication instead of Browser Authentication?
To remain compliant with evolving financial services regulatory frameworks, banks need to keep up with modern security measures. Outdated fraud prevention solutions, like relying solely on a single factor of authentication, could result in non-compliance with the applicable regulations, leading to fines and reputational damage.
Unlike Browser authentication, traditional authentication measures, like one-time passcodes (OTPs), can also cause customer frustration. Customers expect a seamless authentication experience. If the experience is not intuitive and convenient, FIs risk losing customers to competitors offering faster, more user-friendly experiences.
In addition, outdated authentication measures can drive up costs and create inefficiencies, with time-consuming password reset and fraud dispute procedures.
How can financial institutions improve customer experience and build trust with Browser Authentication?
Banks utilizing Browser authentication can enable passwordless logins. Passkeys, biometrics and other passwordless authentication solutions enhance security and the customer experience by making logins more convenient and intuitive.
FIs can secure customer logins without adding friction by implementing silent MFA, which combines Browser authentication with behavioral biometrics. This approach only adds additional verification steps when the risk engine determines a higher level of risk, improving both speed and security.
FIs can also maintain customer trust and a good reputation by remaining compliant with regulatory standards through modern authentication measures like Browser authentication.
Additional resources:
Blog: 6 Ways Browser ID paves the way for a frictionless future
Video: Behind the Shield: Decreasing friction and increasing security with Browser ID