In the past, organizations only relied on experience and some internal audit functions to identify weaknesses that could make the company vulnerable to unnecessary risks. Aside from the auditor, there was no real line of defense against various dangers that could negatively affect the organization. The introduction of 3LoD and multi factor authentication changed the game.

3LoD stands for three lines of defense. As the name suggests, it is a risk management model consisting of three levels. It aims to promote a better and stronger risk management culture. At the same time, the framework helps eliminate inefficiencies, overlaps, or gaps.

Understanding the 3LoD And Multi Factor Authentication

The idea of using multiple protection is a practical solution. It offers safer and more secure interactions and transactions. It can be seen in real-life applications, such as the use of multi factor authentication for payments and such.

The application of the 3LoD may vary depending on the organization. However, the concept behind it does not change. Here are the main characteristics of the three defenses:

Line #1: Risk Owners or Risk Takers

The first line of defense (1LoD) refers to the ones executing control. These include the frontline staff members and the operational management team. The 1LoD implements systems crucial in managing risks related to operations and non-financial functions.

Line #2:  Risk Oversight or Risk Guardians

The second line of defense (2LoD) covers the risk management and compliance functions of an organization. That means these are the members of the organization that monitors risk, such as the back office. They provide the necessary support, tools, and even advice to help the 1LoD in risk identification, management, multi factor authentication and monitoring.

Line # 3: Independent Risk Assurance

The third line of defense (3LoD) is from the internal audit function. It ensures that the 1LoD and 2LoD are effective and that both the risk management framework and internal control function are working.

A strong 3LoD framework has helped many organizations prepare for risks, manage them based on priority, and prevent huge losses.

That said, the changing market poses new challenges. Better utilization is necessary for better security.

In the financial sector, for example, the focus is now more on operational resilience. Prioritizing this aspect has become prevalent among financial services regulators, especially with the COVID-19 pandemic. Aside from considering their vulnerabilities and ensuring cyber security, reducing friction is also a must.

Nok Nok Products’ solutions, such as biometrics and multi factor authentication, can help. You can enhance your organization’s security and reduce friction at the same time. Thus, strengthening your line of defenses and allowing you to have good risk management strategies.

Security is an important aspect that companies have to prioritize when it comes to onboarding and sign-in processes. However, it is not the only thing that businesses have to think about.

Perhaps equally vital is user experience. It is crucial for companies to provide convenience. This way, customers will not view the sign-in process as a chore. 

Intuit, a global technology platform, understands this need. In its search for a solution that will ensure the protection of customer data and offer a convenient user experience, Intuit decided to partner with Nok Nok Products to implement FIDO Authentication.

A Partnership for Better Service With Biometric Authentication

The partnership, as discussed by Intuit Director and Head of Product Marcio Mello, produced phenomenal results. They used biometric authentication based on FIDO standards in their mobile applications, such as Turbo Tax.

Analysis of data during the implementation showed improvement. The company saw no drops during onboarding. The addition of biometrics into the flow helped the company achieve zero enrollment drops.

Additionally, the success rate for signing in also increased. It was almost 100%. In fact, Mello confirmed a 99.9% success rate. That is an improvement compared to other factors. For instance, OTP over SMS can give companies approximately 80% to 85% success. That is if the company is lucky.

That means the FIDO Authentication implementation helped reduce friction in the customer life cycle. 

For organizations with multiple apps, Mello suggests building multi-factor authentication (MFA). According to him, the priority should be the entry point.

Nok Nok Products and MFA

When it comes to user experience, there is no one-size-fits-all solution. That is why companies need to work with reliable industry experts. For instance, Intuit worked with Nok Nok Products for biometric authentication.

Nok Nok Products is a member of the FIDO Alliance. It is among the companies that are pushing for the lessening of password reliance. That said, it does not mean it is against the use of passwords. Aside from biometric authentication, Nok Nok Products offers MFA. Companies can opt for the feature that will best suit their services and needs.

Working with Nok Nok Products comes with many advantages. For example, the company’s services can improve onboarding success by 10%. The onboarding time can also decrease by 50%. Furthermore, sign-in speed can increase by 78%.

If you want to experience the benefits that Nok Nok Products offers, connect with the Nok Nok team.

Markets of today have become more competitive than ever. Standing out among one’s competition has become more challenging each day. For companies, one powerful tool to explore is convenience. In fact, the latest Consumer View report of the National Retail Federation showed that around 83% of consumers consider convenience as a more important factor now compared with five years ago. Approximately 52% said convenience had influenced half or more of their purchases. But what about cyber security with convenience?

Going Mobile

Continuous innovation for convenience brought us mobile phones. In 2021, 5.22 billion people use mobile phones. That number is seen to grow to 7.3 billion by 2023. 

But gone are the days when their only purpose is to help us communicate through calls and messages. Now, mobile phones have become part of the daily lives of many. They can be used to browse the Internet, connect on social media, and even make payments.

Mobile Wallets

The COVID-19 pandemic has impacted lives and businesses. With the need for safer interactions and transactions, more people moved to the use of mobile wallets. Aside from convenience, making digital payments offer a safer way to complete transactions.

Finaria highlighted this development in its report. According to Finaria, the global mobile wallets market in 2018 totaled $755.6 billion. After 12 months, it saw a 90% increase and reached almost $1.2 trillion.

Mobile wallet users reached 901 million globally in 2019. That is expected to reach 1.5 billion in 2021 and 1.7 billion by 2023. The number of mobile POS payment users also saw a rise in 2020, hitting the $2 trillion benchmark. The surge occurred amid the pandemic outbreak. That value is expected to increase further by half a billion in 2021.

Challenges Faced With Cyber Security

Data trends show a shift towards a cashless society. In 2020, around 86.5% of Americans checked their bank accounts through their mobile devices. Within the same year, about $503 billion dollars were sent out as payments using a mobile device.

However, with the convenience that mobile wallets offer comes challenges. Among them is cyber security. Since 2015, there is an increase in mobile app fraudulent transactions. The rise in such cases was over 600%. In 2019, there were 14,392 breaches recorded. These resulted in more than $40 million in losses. Of the total digital fraud losses, 89% were due to account takeovers.

Forecasts for mobile wallets see an upward trend. The U.S., which currently ranks second in terms of mobile payments market size, has $465.1 billion worth of transactions. The following years are expected to show an estimated growth of 49% or a total value of approximately $698 billion by 2023.

Strengthening cyber security for mobile wallets, such as through the use of biometrics or multi-factor authentication, will not only ensure safe transactions for you and your clients but will also help prepare you for a cashless society.  

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