Earlier this month, The European Banking Authority (EBA) issued new guidance on the implementation of the regulatory technical standards (RTS) on strong customer authentication (SCA).

Traditional online identity verification solutions are failing to stand up to today’s fraudsters. In 2016, more than 25% of identity theft fraud involved the use of stolen information to open new accounts.

Nothing is more frustrating to consumers than having to re-authenticate an account in the middle of a transaction. Traveling and need to make a purchase from a new location? Shopping online from a different device? These legitimate transactions are often flagged for fraud and require customers to have to complete step-up authentication, adding yet another unnecessary step in their online shopping journey.

The financial services industry is in the midst of sweeping change. Earlier this year, we saw one of the latest shifts with the introduction of the European Union’s revised Payment Services Directive (PSD2).

Businesses regularly use device identity for fraud prevention and to authenticate users. Browsing the web on your cell phone? These solutions collect information on your mobile provider, phone model, internet connection and other data to link your unique device back to you.

In recent years, the global financial sector has experienced a significant surge in new types of fraud and cybercrime. Breaking it down to geographic regions, we see that these dynamics are influenced by a wide array of factors such as the political setting, financial practices, IT structures and the regulatory environment.