Vonage & Callsign Bring the Fight to Fraudsters
Intelligent Authentication for banking by Vonage & Callsign
In the ongoing arms race between online security and the criminals who seek to compromise it, the user experience has occasionally seemed like collateral damage: being made to jump through increasing hoops to access their online services securely creates discontinuity for customers and excludes growing numbers through technical requirements, while compliance requirements become ever greater for financial services providers keen to protect their own risks.
A new customer-centric partnership between Callsign, a London-based pioneer of the identity revolution, and global business cloud communications leader Vonage (via their Nexmo API programme), is determined to challenge this situation. Callsign’s award-winning Intelligent Driven Authentication seamlessly verifies and authenticates users in deeper and more personal ways, yet without getting in the way of the CX interaction, and their Head of Partnerships, Ryan Gosling, was keen to bring on board the perfect vendor blending call and SMS products to layer with their authentication service to create the most frictionless connection service between banks and their customers:
“When you think about the history of authentication, we started with password and username, which can be hacked quite easily. Then we started to move in the direction of card readers, which are very secure, but awkward – you have to carry around this extra device.
“At Callsign now the future is not around what you know or what you have, but what you do – this is where the artificial intelligence and machine learning comes in. Looking at things like device behaviour and location among thousands of potential data points, we can build a really deep profile or identity for an individual, a passive system which doesn’t rely on data being entered – so it can identify and onboard you much more quickly”.
In September 2019, new requirements for authenticating online payments will be introduced in Europe as part of the second Payment Services Directive (PSD2), and some banks are going to have to authenticate their customers more securely than they presently do. The Vonage/Callsign partnership, with its SDK for native deployment in any provider’s own platform, is a solution helping to meet the new requirements, without creating increased friction for users.
After all, the stakes are only getting higher. Gosling:
“Authentication is actually moving more towards identity. A few years ago if you hacked into someone’s account you’d just be taking their money, and often the banks would refund that. Now it’s your entire identity that’s at risk, with multiple points of vulnerability”
“So we’re building a detailed profile of a user which can actually help them across all aspects of their digital life” – including potential support with recovery from fraud.
“And [with so many data points in the mix] we’re giving choice, to the banks but also to their customers – no one size fits all, and we can meet the users preference to authenticate via SMS, by phone call, etc. Not everyone is comfortable using a mobile app, and every individual and institution has their own risk appetite.”
“It’s this flexibility which provides the best user experience”
So, increasingly frictionless data collection and authentication, via multi-channel communications, sounds like the future for banking communication – through PSD2 and beyond. On the consumer side having third party actors like Callsign managing this identity rather than the banks themselves makes a certain amount of sense, though I imagine we’ll see a growing need for clarity over the details of the profiles being built. Who owns these detailed datasets about us, and how are they protected from potential abuse? We continue to live in interesting times!