A new report released by Javelin Stretegy and Research reveals that while American consumers still prefer challenge questions or similarly knowledge-based authentication methods for their online banking, other methods such as biometrics are gaining support, according to an Information Week article.
More than simply gaining in support, biometric authentication in online banking is closing in on challenge questions as 64% see questions as effective and 58% believe biometrics to be effective.
One of the chief reasons the report’s author, Robert Vamosi, believes the growth in support for biometrics is being seen is the rise in familiarity with the technology due to more consumers using biometrics at work.
In addition to the growth of biometrics, however, support for knowledge-based questions has dropped which Vamosi believes could be attributed to a lack of confidence that answers to such questions couldn’t be found by fraudsters via social media or other means.
Read the full story here.