OneSpan: Most Financial Institutions Still Rely on Outdated Password Security

In recent years, more and more financial institutions have turned to biometric technology to improve security and customer service, incorporating solutions that range from voice banking software to facial recognition scans at ATMs. However, a new report from OneSpan suggests that it will take a considerable push to make the full transition to biometric authentication practices.   

The Future of Adaptive Authentication in the Financial Industry was prepared by the Information Security Media Group following a broad survey of financial institutions. The report found that the vast majority of organizations – a full 96 percent – still use outdated legacy systems with username and password authentication as part of their security procedures.

Those systems are highly vulnerable, as indicated by the 44 percent of the respondents who have faced data breaches that began with the illicit use of legitimate credentials. What’s more, many institutions have trouble using the security platforms they already have in place, with 44 percent again reporting that they have too many separate tools that are difficult to coordinate.

Thankfully, financial institutions are aware of the problem, with 60 percent reporting that they plan to invest in biometric and AI authentication technology in 2019.

“The report’s findings echo what we are seeing with our customers,” said Scott Clements, the CEO of OneSpan. “Financial institutions are under pressure to improve their defenses against continuing and evolving threat vectors. Many are now choosing innovative technologies that dynamically respond to attacks as part of a layered security approach that stops fraud while improving the customer experience.”

OneSpan spent much of 2018 targeting the financial services sector, with help from its partner Nok Nok. This latest report suggests that that will continue to be part of the company’s growth plans for 2019.

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March 6, 2019 – by Eric Weiss