iovation Offers Password-Less Security
As e-merchants seek to reduce friction for their Web and mobile customers, authentication specialist iovation has launched a new “password-less security” service, which the company says streamlines the user experience while maintaining robust protections. The system is based on device authentication, which enables users with recognized devices to bypass passwords when accessing relatively low-risk sections of their online accounts, such as account balances, shopping records and activity histories. For higher-risk actions like purchases, money transfers and account management, the system requires stepped-up authentication such as challenge questions.
“If the first generation of Internet security was about finding holes and the second was about patching them to keep the bad guys out, the third generation—especially for consumer sites—will be about striking a balance between fraud prevention and customer experience,” said Scott Olson, vice president of product, iovation. The system uses “fuzzy logic” algorithms to maintain device recognition even after browser or firmware updates, and can be operated as a standalone service or integrated with iovation’s other fraud prevention and authentication tools.
With commerce migrating to Web and mobile channels, e-merchants are focusing on reducing friction to combat the problem of shopping cart abandonment, which cost retailers $24.5 billion in revenue last year, according to Jumio. Several online checkout services, including Amex Checkout, Visa Checkout and MasterCard’s MasterPass, aim to increase customer conversion by storing shoppers’ payment and shipping data and requiring only a password to complete a purchase. PayPal and Amazon also offer similar “one-click” e-commerce services.