Smart chip credit cards and terminals work together to protect in-store payments. These in-store security advances were introduced in 2015, and have pushed malicious actors who possess stolen credit card data to perform payment card fraud online. Because online retailers cannot utilize all of the benefits of improved credit card technology, they should consider implementing stronger authentication to reduce the risk of electronic commerce (e-commerce) fraud.
In collaboration with stakeholders in the retail sector, the NCCoE published a practice guide that explores risk-based scenarios to trigger the use of multifactor authentication (MFA) to help reduce fraudulent online purchases. In the project’s example implementations, if certain risk elements (contextual data related to the transaction) are exceeded that could indicate an increased likelihood of fraudulent activity during the online shopping session, the purchaser will be prompted to present another distinct authentication factor—something the purchaser has—in addition to the username and password.
The NCCoE’s practice guide to Multifactor Authentication for E-Commerce can help your organization:
- reduce online fraudulent purchases, including those resulting from the use of credential stuffing to take over accounts
- show customers that the organization is committed to its security
- protect your e-commerce systems
- provide greater situational awareness
- avoid system-administrator-account takeover through phishing
- implement the example solutions by using our step-by-step guide
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