Consumer Views on Authentication with Aite Group

WEBINAR

CONSUMER VIEWS ON AUTHENTICATION

APRIL 2017

NEW RESEARCH ON PERSPECTIVES AND TRENDS

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T H E D E A T H O F P A S S W O R D S

2004

20122016

• components

“ Z O M B I E T E C H N O L O G Y ” D E M O N S T R A T E D

“But I’m Not Dead Yet!”The Mat Honan

Hack and the Year of the Mega Breach

Bill Gates at the RSA Conference

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6 billion records compromised since 2013

(Last year, 1.5 billion from Yahoo alone)

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How do consumers value authentication?

How do consumers react to poor experiences?

What preferences exist for types of access controls?

How will FIs adapt to these preferences?

When will we turn the corner to “passwordless”?

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J U L I E C O N R O YR E S E A R C H D I R E C T O R

n Head of Aite Group’s Retail Banking & Payments practice, covering fraud, data security, anti-money laundering, and compliance.

n VP-level product management roles in financial services, risk management and payment processing.

M I C H A E L T H E L A N D E R

D I R E C T O R P R O D U C T M A R K E T I N G , I O V A T I O N

n Manages go-to-market, launch and customer education activities for iovation’s authentication products.

n 20 years in VP- and director-level product management and product marketing roles for information security companies.

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T O D A YA G E N D A

WHO WE SURVEYED

PRIORITIES FOR ONLINE BANKING

HOW BAD ARE WE AT USING PASSWORDS?

PREFERRED ONLINE AND MOBILE METHODS

RECOMMENDATIONS AND TURNING THE CORNER

WHO WE SURVEYED

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W H O D I D W E S U R V E Y ?1 , 0 9 5 C O N S U M E R S A C R O S S A L L A G E G R O U P S

The survey distribution reflects overall U.S. population

distribution

“Omnichannel” users across mobile and web formats

PRIORITIES

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W H A T ’ S I M P O R T A N T ?S I M I L A R I T I E S … A N D S O M E K E Y D I F F E R E N C E S

n Ease of use is as important, for most groups, as passive fraud prevention

n Interactive security and protection is increasingly valued

n A desire for “robust transactional capabilities” created the biggest delta between groups

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n Transaction tagging

n Flexible reporting and transaction searching

n Internal and external transfers

n Integration with tax services and apps

n Digital onboarding

n Portfolio management

W H A T ’ S I M P O R T A N T ?S I M I L A R I T I E S … A N D S O M E K E Y D I F F E R E N C E S

HOW BAD ARE WE AT USING PASSWORDS?

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n 107 accounts per average user, expected to be 207 by 2020 (Survey by Dashlane 2014)

n Paradoxically, the better we do at password hygiene, the worse usability becomes:dFouY#4!9n is a strong password but a nightmare to manage

N U M B E R O F U N I Q U E P A S S W O R D SS E C U R I T Y E X P E R T S R E C O M M E N D U N I Q U E P A S S W O R D S

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n “Extremely frustrated” or even “Very frustrated” customers are at odds with the goals of most product owners

n And increasingly, even their paychecks

R E S P O N S E T O F O R G O T T E N P A S S W O R D SI N A W O R L D W H E R E E X P E R I E N C E I S K I N G , F O R G O T T E N P A S S W O R D S A R E A N A T H E M A

PREFERRED ONLINE AND MOBILE METHODS

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Device fingerprint: a collection of hardware and software attributes associated with a specific device, including device location

Eye vein biometric: Uses the device’s video recorder to capture distinct eye patterns

Facial recognition: Uses the device’s video recorder to capture facial shapes, with added tests for “liveliness”

Fingerprint biometric: Leverages a device’s embedded fingerprint reader

Knowledge-based authentication: KBA questions provide identity based on the answers to shared secrets

Mobile network operator data: Uses the operator’s own systems for authentication and authorization

One-time password: Sends a one-time password via text messaging or mobile push

Two-way text: Like OTP via text messages, but allows for consumer responses like “Approve” or “Deny”

Voice recognition: Unique biometric based on the characteristics of the user’s voice

But what do consumers prefer?

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P R E F E R E N C E ST O P F I V E P R E F E R E N C E S F O R E A S E O F U S E A N D P E R C E I V E D E F F E C T I V E N E S S

Username/password

Fingerprint biometric

KBA

Device identification

Facial recognition

EASE OF USE EFFECTIVENESS

Fingerprint biometric

Eye biometric

Username/Password

KBA

Facial recognition

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W I L L I N G N E S S T O E N G A G E

• Preferences for Mobile push and Two-way text

• But also Some markedly negative responses

• Particularly among Seniors’ dislike for Mobile push technologies…

• And in every demographic a negative response to voice recognition

RECOMMNEDATIONS AND TURNING THE CORNER

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n One quarter are not interested in changing, regardless of the use of incentives

n More than half would change even without an incentive

n The balance could be persuaded to change with $10 to $25 incentive

W I L L I N C E N T I V E S C H A N G E B E H A V I O R ?A N D H O W M U C H I N C E N T I V E I S R E Q U I R E D ?

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n Differences between demographic groups can be stark

W I L L I N C E N T I V E S C H A N G E B E H A V I O R ?A N D H O W M U C H I N C E N T I V E I S R E Q U I R E D ?

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n Start with the mobile channel

n Enable multiple forms of authentication

n Leverage the complementary nature of notification and authentication strategies

n Tailor education to customer’s demographic group

n Consider providing incentives to shift behavior

R E C O M M E N D A T I O N S

Something you KNOW

Something you HAVE

Something you ARE

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A T H R E E - P R O N G E D A P P R O A C HC O L L A B O R A T I O N B E T W E E N C O N S U M E R S A N D T E C H C O M P A N I E S

Consumers

Tech Companies

ENLIGHTENED & CONCERNED CONSUMERS

HARDWARE & DEVICE MANUFACTURERS

AUTHENTICATION SOFTWARE PROVIDERS

ACME

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A T H R E E - P R O N G E D A P P R O A C HC O L L A B O R A T I O N B E T W E E N C O N S U M E R S A N D T E C H C O M P A N I E S

Consumers

Tech Companies

ACME

Still leaves the problem of entrusting your credentials to a

centralized store that could be breached

Focused on ways to make “future

concepts” a current reality

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G O T O W W W . I O V A T I O N . C O M / R E S O U R C E S

R E S O U R C E S

AITE REPORT ON CONSUMER PERSPECTIVES

A comprehensive survey of consumer perspectives on authentication and the responses needed by the FI community

ADDITIONAL RESEARCHAVAILABLE SOON

Follow-on research on the impact false positives have on customer experience

Q&A