UK banks welcome the six-month extension to implement strong customer authentication (SCA) for e-commerce transactions, with 42% planning to use the time to improve and enhance their roll out plans.
Global data and analytics company LexisNexis Risk Solutions conducted a survey of during a UK Finance webinar, which had 500 UK financial services professionals.
The poll also quizzed respondents on how their organisation shared fraud risk intelligence across the online customer journey. Only 12% stated they shared intelligence across all areas of the customer journey, hinting that some financial organisations are not fully leveraging intelligence, LexisNexis claims.
Last year, the Financial Conduct Authority extended the deadline for SCA compliance to March 2022. This move was done to reduce the disruption to consumers and merchants.
The new legislation, which was initially poised for a September 2019 implementation, will require firms to bolster the identity verification for online transactions.
Once implemented, payments will need to have two-factor authentication. There are three types of authentication methods, the first is knowledge-based, such as a password, the second is a physical possession like a debit card or phone, and the final method is a personal trait, such as a fingerprint or face scan.
LexisNexis solutions director Dan Holmes said, “The results from the poll were very interesting. “They suggested that some issuers are pressing on with SCA compliance, while others remain cautious – leveraging the extra time given by the deadline extension suggests that issuers may have been preparing to do the minimum to meet requirements, and then build-out post-September. They will now however take advantage of the extension to improve delivery sophistication
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