MFA in Fintech: Importance, Challenges, and Best Practices

By: Blue bricks
PERTH, Australia - Oct. 26, 2021 - PRLog -- What is MFA?

Multifactor Authentication (MFA) is a protection control that asks users to authenticate their identifications. It asks them to provide multiple pieces of evidence before obtaining access to a device or an application.

Multifactor authentication connects two or more independent credentials:
  • what the user understands, such as a password
  • what the user has, such as a security token
  • what the user is, by using biometric verification techniques

Security Challenges Faced by Fintech Industry

The fintech sector is a combination of financial and technology prospects. It is considered to be the following significant step in financial services. When technology-driven innovation is appended in the traditional financial sector, the lending and payment methods are predicted to undergo a high level of disruption with the evolution of technology.

Here are some of the common challenges faced by Fintech companies in 2021:
  • A lot of data flows through the cloud infrastructure, and with the poor speed, accessibility, and scalability of the cloud platform, it is more prone to cybersecurity attacks.
  • Malware attacks use multiple entry points from various sources like emails, pop-ups, third-party applications, and more. These attacks have a high transfer rate as they tend to crash the entire network of the application.
  • With skyrocketing traffic to fintech apps alone, there is more data to manage, more possibility of man-in-the-middle attacks, and more storage locations that demand protection.
  • Phishing emails in the form of password reset are used by hackers to trick users into revealing their login credentials. Furthermore, account fees in one more aspect used by hackers to run away with the user's credit card details.
  • One more reason many top-notch fintech companies fail to fulfill is meeting compliance requirements. It can result in hefty fines and security flaws.        

Best Practices of Using MFA in Fintech

If you want to provide your users a seamless user experience without compromising a solid security posture, here are the best practices that your organizations should follow to evolve their identity in the future of fintech.
  • One of the top and most important tips for fintech companies is to implement SSO (Single-Sign-On). With the help of SSO, you eliminate redundant passwords, enabling you to improve security encompassing a single authentication that now grants access to all your user's requests.
  • Security management is the foundation for solid digital protection. Fintech companies should set the appropriate security protocols to execute multifactor authentication methods and best practices.
  • According to NIST, Multifactor Authentication asks users to present numerous information bits when logging into their account. It can be anything from something you know or something you have or something you are. The user must implement at least two of the above to access their records.
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