Banking Exchange Magazine Logo

Consumers primed to use advanced security solutions

Improved authentication is critical as fraudsters have access to large amounts of personal information

Consumers primed to use advanced security solutions

Consumers are ready to use advanced authentication solutions for safer online retail purchases, says Javelin Strategy and Research in its latest report.

In 2012, online retail payments reached 7.4% ($318 billion) of all retail transactions. The thriving online market is an increasing target for fraudsters to both steal and misuse consumer data as data breaches and malware evolve as the primary means to acquire this valuable information.

“Yesterday’s fraudsters picking pre-approved cards from mailboxes could be compared to robbing a cash register. Today’s fraudsters are cleaning out the safe through data breaches and malware,” says Al Pascual, senior analyst – Security, Risk, and Fraud at Javelin Strategy & Research. “Improved authentication is critical as fraudsters now have access to copious amounts of compromised personal information and payment data. Merchants need to surmount unfounded fears of consumer backlash as consumer familiarity will breed comfort and confidence in using newer, more secure authentication measures.”

Most consumers are not familiar with authentication technologies for use during online retail payments, but that is about to change. While two-thirds of consumers say they are well-acquainted with static security questions (see chart), many merchants are apprehensive about introducing additional steps into the checkout process that may introduce friction and contribute to shopping cart abandonment.

But, several emerging solutions offer less intrusive ways, such as advancements to the 3-D Secure platform and Fast Identity Online (FIDO) to authenticate consumers for online and mobile transactions.,pressRoomDetail

John Ginovsky

John Ginovsky is a contributing editor of Banking Exchange and editor of the publication’s Tech Exchange e-newsletter. For more than two decades he’s written about the commercial banking industry, specializing in its technological side and how it relates to the actual business of banking. In addition to his weekly blogs—"Making Sense of It All"—he contributes fresh, original stories to each Tech Exchange issue based on personal interviews or exclusive contributed pieces. He previously was senior editor for Community Banker magazine (which merged into ABA Banking Journal) and for ABA Banking Journal and was managing editor and staff reporter for ABA’s Bankers News. Email him at [email protected].

back to top


About Us

Connect With Us


CSI: Hawthorn River
Lending Regulatory Compliance

WEBINAR: Tuesday, May 21st, 2024, 2:00 CT / 3:00 ET

Join us to learn more about leveraging technology in Hawthorn River to support your lending process and its regulatory compliance. From 1071, TRID, HMDA, CRA and more in the sea of regulatory acronyms, our end-to-end loan origination solution creates efficiency for financial institutions.

Join this session for an overview of the platform, an interactive Q&A and information about:


This webinar is brought to you by:
OneSpan logo