IT Pros Want More Secure Authentication: Ponemon
The report noted unauthenticated OTPs translate into inactivated accounts, incomplete transactions and, ultimately, a poor customer experience.The vast majority (68 percent) of North American organizations agree there’s a need for more secure authentication methods over the traditional username and password method, according to a report by the Ponemon Institute and sponsored by mobile interaction service provider Tyntec. As online security breaches become more prevalent and disruptive, the emerging verification method of choice is SMS-based 2FA due to its user-friendliness, cost effectiveness and high level of security. The Ponemon report found that companies implementing SMS-based 2FA use the method mainly for identity verification in user registration (43 percent), each login (38 percent) and transactions (33 percent). According to the survey, 29 percent of respondents in North America cite that, on average, 11-20 percent of one-time passwords (OTPs) fail to be delivered. Of that, 48 percent on average fail because an invalid mobile number was entered by the user.
"Enterprises and Internet companies know that the traditional username and password is simply not enough anymore. However, companies deploying SMS-enabled two-factor authentication need to ensure that OTPs aren’t being sent to invalid mobile numbers," Larry Ponemon, chairman and founder of the Ponemon Institute, said in a statement. "As a result, the research confirmed that 67 percent of global respondents said customer experience improves when SMS-based, two-factor authentication is combined with real-time verification of the receiver’s mobile number."