What are Tokens?
A token is a portable device used for user authentication. It typically houses a unique code that generates a one-time password (OTP). This OTP is then used to log in to an online banking account or other financial services.
Why are tokens no longer enough?
In today’s digital landscape, financial institutions face a growing trend of insider fraud. Malicious employees misuse their access credentials for nefarious activities which can affect the organization’s bottom-line and cause an erosion of customer trust with attendant reputational damage.
Earlier this year, a mid-level employee at a prominent African bank had his access used to authorize fraudulent transactions from a customer’s account and this was done with the aid of a token that generated unique codes for login and authentication.
This transaction was flagged by internal control and the employee claimed that his device went missing the previous day. Unable to prove that it was him who indeed authorized the transaction, he was not sanctioned by the organization.
This highlights the pervasive nature of insider fraud. According to the Association of Certified Fraud Examiners (ACFE), in its 2022 report, 2,110 cases of internal fraud across 133 countries resulted in estimated losses of $3.6 billion.
Non-Repudiation
Non-repudiation is a legal concept that ensures that a party cannot deny having performed an action. In the context of financial services, non-repudiation can be used to prove that a transaction was authorized by a particular user.
Achieving non-repudiation in financial services requires a combination of strong authentication measures and advanced technologies. Some common methods include:
- Multi-Factor Authentication (MFA), which requires users to provide multiple forms of verification, such as passwords, biometrics (fingerprints and facial recognition), and time-based one-time passwords (TOTP).
- Digital Signatures, which involves using cryptographic techniques to verify the authenticity of documents and messages.
The use of biometric technology is an efficient way to ensure non-repudiation as fingerprints and facial images are unique to individuals. Every organization therefore needs an identity access management system that uses biometric technology.
Seamfix iAM: A Comprehensive Solution
Seamfix iAM is a robust identity and access management platform from Seamfix that offers a comprehensive suite of features to help financial institutions achieve non-repudiation. This is achieved via multi-factor authentication that protects apps and real-time biometric checks including fingerprint scanning and facial recognition that streamlines access.
Other features include:
- Robust User Management to manage users, groups, roles, and apps from a single dashboard.
- Single Sign-on which ensures One-click access to all your essential apps.
- Reporting & Analytics that allows you to generate custom PDF reports for audits and reporting.
- Secure Access Control so you can take charge of who sees what.
Benefits of Seamfix iAM
By implementing Seamfix iAM, financial institutions can achieve the following
- Prevent unauthorized access and stop insider fraud.
- Strengthen overall security and protect sensitive customer data.
- Meet regulatory requirements and mitigate legal risks.
- Streamline workforce governance and improve operational efficiency.
In today’s world, tokens are no longer enough. You need a robust workforce governance solution, you need Seamfix iAM.
Please click the button below to request a demo
