NEW REPORT: Shutting Down PSD2’s New Security Threat

Protecting digital identities is all about keeping up — keeping up with new technology, new regulations and, of course, bad actors. 

The July PYMNTS Digital Identity Tracker™, powered by Socure, features news on how security technology providers are using new technology, including biometrics and two-factor authentication, to protect customer data and comply with new regulations surrounding data security. 

Around the Digital Identity World

Biometrics are booming, and there’s no slowdown in sight. In fact, according to one recent study, 60 percent of transactions conducted by the start of the next decade will be authenticated and completed using biometric technology. And, over the course of the last month, providers spanning sectors from computer parts to financial services worked to get more — and better — biometric scanners into the hands of consumers worried about data security.

Microsoft, for one, partnered with biometric technology provider Fingerprint Cards to debut a new keyboard with a fingerprint sensor built into an otherwise ordinary-looking key. Called the Modern Keyboard with Fingerprint ID, the Microsoft keyboard is outfitted with Fingerprint’s FPFC2015 biometric fingerprint sensor. Similarly, OT-Morpho is looking to bring biometric authentication from smartphones to debit and credit cards. The biometrics and digital identity technology provider recently debuted a line of EMV-compliant, biometric-enabled payment cards.

Meanwhile, Precise Biometrics is hoping to prevent biometrics fraud with a new mobile security suite. The company debuted a new mobile security suite last month, called Spoof and Liveness Detection, to determine if a finger is genuine or fake. 

For the latest notable headlines from around the Digital Identity world, check out the Tracker.

Prepping for PSD2 in the EU

With new technology and capabilities comes new regulation. At the start of 2018, a new regulation called the second Payment Services Directive (PSD2) will officially take effect requiring banks, credit unions, financial institutions and FinTech companies transacting across the EU (European Union) to change the way they conduct business.

With the arrival of PSD2 approaching, PYMNTS recently caught up with Thomas Egner, secretary general of the Euro Banking Association, to discuss the conditions that led to the regulation, what will change when it arrives and what’s coming next. Egner, who is based in Germany, explained that while the first iteration of the Payment Services Directive was successful, the time had come for an update. Nearly a decade after the first regulation took effect, that update has arrived. 

“You already had part of this in PSD1, but it was a much smaller piece than what PSD2 covers,” Egner said. In the European Union, the most important measure of PSD2 requires banks and other financial institutions and FinTechs to share consumer data with companies they may consider competitors, and requires the use of biometric verification and other security protocols. 

To read the full story, download the Tracker. 

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    The Digital Identity Tracker™, powered by Socure, is a forum for framing and addressing key issues and trends facing the entities charged with efficiently and securely identifying — and granting permission to — individuals to access, purchase, transact or otherwise confirm their identity.