Reducing SMS Authentication by a Factor of Five
Reducing SMS Authentication by a Factor of Five

Many banks are replacing traditional risk-based secret questions with out-of-band SMS authentication. Beyond the enhanced (perceived) security that comes with out-of-band authentication the major driver for adoption of these technologies is regulation (i.e. FFIEC Guidelines). However, with security and compliance comes a surge in calls by users who are locked out of their account, resulting in tremendous operational costs and negative online channel reputation. This whitepaper provides a quantitative framework for analyzing the situation, showing that without reducing the challenge rates, a typical bank may suffer $3.6 million in operational costs for every 1 million online users. It then explains how to cut the associated operational costs and friction by a factor of 5 without compromising security, by leveraging the new approach of cognitive- behavioral authentication.

In this white paper you will learn:

  • What is a cognitive-behavioral authentication;
  • How to reduce operational cost;
  • Why SMS authentication alone is not necessarily useful .



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