Strategies For Implementing Risk-Based Authentication In Ecommerce

Recently worked on an issue where an account was taken over, even though the account had MFA enabled. Ultimately MFA fatigue caused a user to automatically approve an MFA request when it wasn't valid. Multi-Factor Authentication (MFA) fatigue is a security risk that arises when users are overwhelmed by frequent authentication prompts, potentially leading to carelessness or susceptibility to social engineering attacks. Here are several strategies to prevent MFA fatigue: 1. Implement Adaptive Authentication: Risk-Based Authentication: Use contextual information to assess the risk level of an authentication attempt. For example, consider the user's location, device, and behavior. Only prompt for additional authentication factors when the risk is high. 2. Optimize MFA Frequency Session Duration: Extend the duration of authenticated sessions where appropriate (based on location, app, and other controls), reducing the need for repeated MFA prompts within a short period. Device Trust: Allow users to mark personal devices as trusted, requiring MFA only on new or untrusted devices. 3. Enhance User Experience Single Sign-On (SSO): Implement SSO solutions to reduce the number of logins and MFA prompts by allowing users to authenticate once and gain access to multiple applications. Biometric Authentication: Integrate biometric factors (e.g., fingerprint, facial recognition) to make the authentication process quicker and more user-friendly. 4. Educate Users Security Awareness Training: Regularly educate users about the importance of MFA and the risks associated with MFA fatigue. Teach them how to recognize and respond to social engineering attacks. Clear Communication: Provide clear instructions and support for users experiencing MFA fatigue, ensuring they understand the security measures in place. 5. Continuous Monitoring and Improvement Monitor Authentication Logs: Regularly review authentication logs to identify patterns of MFA fatigue and adjust policies accordingly. User Feedback: Gather feedback from users on their MFA experiences and use this information to improve the process. 6. Leverage Push Notifications and Modern MFA Methods Push Notifications: Use push notifications through a secure app instead of traditional SMS or email-based MFA, reducing friction and improving security. These are just some controls and each environment should be analyzed and appropriate controls be used based on each security context and risks.

$1M in fraud protection starts with mapping. That’s the goal. Now break it down: • Map every user touchpoint • Assign risk levels to each interaction • Identify high-risk points before fraud does Here’s how to deconstruct your risk surface area: 1. Map the User Journey: • Outline each touchpoint from signup to checkout. • Identify data points where fraud could slip in. 2. Label Risk Levels: • Assign risk levels to each interaction. • Use past data to gauge potential threats. 3. Build Fraud Detection Points: • Integrate checks and controls along the journey. • Automate alerts for suspicious behaviors. Example framework: 1. Map out every single user interaction. 2. Rate each point by risk potential, high to low. 3. Place tailored fraud checks where they matter most. What does this give you? A roadmap of where fraud might hit, long before it does. No more guesswork, just a clear system.

How the fraud team maximises revenue (...by turning risk data into revenue opportunities): Most people think fraud teams just block bad guys. But smart fraud teams are actually revenue drivers. Here's how to use real-time risk signals to maximize sales while stopping fraud: 🔷 Dynamic journey mapping — Analyze user behavior from first click to checkout. Build trust scores that evolve throughout the session. Low-risk users get express lanes, suspicious ones get guardrails. 🔷 Intelligent friction layering — Add or remove security steps based on real-time risk levels. Known customers on trusted devices? One-click checkout. New user with suspicious patterns? Extra verification. 🔷 Smart payment routing — Match payment methods to risk profiles. Premium customers get instant access to high-value features. New accounts start with lower limits that grow with trust. 🔷 Continuous session monitoring — Track subtle risk changes during user sessions. Automatically adjust security measures up or down as behavior patterns shift. If you Implement this approach.... The results: - Reduction in customer churn - Faster checkout times = more revenue, quicker - Increase high-value transactions and customer LTV All while maintaining genuine user rates over 98% and keeping fraud rates under 1%. Want to see how to use real time device intelligence as part of a risk-based UX framework? Drop "+" below and I'll share how you can turn the fraud team into a revenue driver.