According to an industry survey conducted by biometric authentication provider authID.ai in partnership with Market Measurement, 80% of fintech decision-makers harbor moderate to high levels of concern about the risks associated with legacy identity authentication options. Three-quarters of the executives also expressed at least a moderate degree of concern about potential customer dissatisfaction with one-time passwords (OTP) and knowledge-based authentication (KBA) questions.
Legacy IT security tools possess vulnerabilities capable of being exploited, including seizure of SMS pin codes by cyber criminals or fraudulent account takeovers using easy-to-guess security prompts.
Despite executives’ concerns of these tools, fewer than a quarter (22%) of respondents are currently using an alternative system, such as facial biometric identity authentication. However, of significance, the majority of respondents (70%) are likely to consider switching to that alternative in the next year. In fact, over the next 12 months, 75% of respondents said they plan to increase their investment in IT security, including identity authentication.