FICO discusses the delay of Secure Customer Authentication deadline due to Covid-19

FICO discusses the delay of Secure Customer Authentication deadline due to Covid-19

Sarah Rutherford

Identity Solutions Expert at FICO

Views 353

FICO discusses the delay of Secure Customer Authentication deadline due to Covid-19

22.06.2020 02:15 pm

Sarah Rutherford, Identity Solutions ExpertFICO discusses the impact of the delay of the Secure Customer Authentication (SCA) deadline due to COVID-19

“It’s ironic that COVID-19 is being used as a reason to delay SCA given that it is has also increased ecommerce transactions and caused many people who were not previous online shoppers to start using ecommerce. Many of the users pushed to use e-commerce by current circumstance will not be as digitally savvy as established online shoppers and that in itself elevates risk” warns Sarah Rutherford, Identity Solutions Expert at FICO.  “Card issuers are currently wrestling with how they give these newbie users good shopping experiences with the need to prevent fraud. As we move to the new deadline they will then be faced with further upheaval as they try to retrain them and the rest of the population on how security happens.

“The impact on payment security of the deadline depends on how merchants react, the deadline has been moved but that doesn’t mean that merchants can’t individually deploy it sooner and a very small number already have. It all hangs on when merchants decide to deploy 3D Secure in their ecommerce environments. The longer they leave it the longer transactions have the higher fraud risk that Strong Customer Authentication looks to tackle. The problem is that there is limited incentive for merchants to go early, as soon as a Merchant introduces 3D Secure then they are potentially introducing friction into the customer journey and they are worried that will cause them to lose sales. The deadline could mean that most merchants make a last-minute dash to comply and that could impact them if they need help and support from their 3D Secure provider – all at the same time.

“FICO is a pioneer in the use of predictive analytics and data science to improve operational decisions, developing technologies that increase profitability, customer satisfaction and growth for businesses in financial services, telecommunications, health care, retail and many other industries. The company has a wealth of subject matter experts who can provide opinion and thought leadership; it also commissions research and insight into both business and consumer opinion on a wide range of issues, from identity management to how customer interactions can be managed as the global economy emerges from the coronavirus lock down”.

Latest blogs

Nish Kotecha Finboot and Bryan Foss, NED, Visiting Professor at Bristol Business School and member of the FRC Audit & Assurance Council

How Listed Companies Can Use Blockchain to Prevent Auditing and Reporting Malpractice and Avoid Scandal

Not too long ago, there was very little to link Wirecard, the disgraced payments platform in Aschheim, Germany, with Boohoo, the fast-fashion online retailer in Leicester, England, but both have recently been embroiled in high-profile scandals. Read more »

Leon Muis Yolt Technology Services

The Time for Financial Services to Become Truly Digital is Now

The financial services industry looks set to change dramatically over the next couple of years in response to COVID-19. The pandemic has certainly highlighted some inefficiencies and weak spots in current processes for many businesses, such as those Read more »

Granville Turner Turner Little

The Lockdown Money Revolution

Many Brits have found that lockdown has been beneficial for their money, having cut back on personal spending and managing to put away some extra cash. According to eToro, Brits with unspent discretionary income are set to accumulate £75.5bn in Read more »

Sandra Higgins Sysnet Global Solutions

Are You ‘Prescribing’ the Right Security Solution to Your Merchants?

When it comes to leading a healthy lifestyle, eating the right food, taking regular exercise, and maintaining a positive mindset are key. However, despite these best intentions and practices, you still might not get all the nutrients your body needs Read more »

Robert Flowers DivideBuy

It Doesn’t Have to Be the End – How Retailers Can Grow in Light of COVID-19

It’s no news that the retail industry has been flipped on its head by the COVID-19 pandemic. Due to the lockdown, most in-store operations have been shut down, and nationwide furloughs, reduced pay and steady streams of income at risk have fuelled a Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel