As Mobile Fraud Rises, The Password Persists

The COVID-19 Pandemic spurred a huge increase in the use of mobile financial applications, and an even bigger surge in mobile application fraud. But that hasn’t lessened the banking and financial service industry’s heavy reliance on a venerable, but flawed security technology: the password.

Out of a group of twenty-seven mobile applications that offer financial services, twenty-six of them still rely on passwords as the primary form of authentication, even though the technology offers weaker security and more overhead (or “friction”) for users, according to a new survey by the company Incognia. In the same group of apps, just 70% of them supported multi-factor authentication, despite widespread recognition that the technology greatly reduces instances of account hijacking, the study found.



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