Boston, October 30, 2012 – A new report from Aite Group explores the use and trajectory of knowledge-based authentication in U.S. e-commerce, healthcare, and financial services. Based on Q2 2012 Aite Group surveys of and interviews with U.S. executives across e-commerce, healthcare, and financial services, this report offers a series of best practices for successful KBA implementations and recommendations for businesses seeking to upgrade or implement KBA technology.
In the world of fraud mitigation, the goal of knowledge-based authentication is to provide authentication questions that are difficult enough that a fraudster cannot answer them but not so difficult that the genuine consumer will fail the authentication. While static KBA has fallen out of favor, the tool remains a relevant technology in layered, remote-channel fraud-mitigation strategies, and dynamic KBA enjoys increasing adoption, particularly in e-commerce and among financial institutions. As a result, Aite Group expects KBA to enjoy double-digit growth for some time.
“KBA technology has numerous opportunities to improve and grow into new industries,” says Julie Conroy, research director with Aite Group and co-author of this report. “As businesses move from static to dynamic KBA and innovation creates new use cases, healthcare and certain areas of online and mobile authentication represent opportunities for KBA providers.”
This 26-page Impact Report contains 19 figures and one table. Clients of Aite Group’s Retail Banking and Health Insurance practices can download the report by clicking on the icon to the right.