American banks are besieged and the enemy is invisible. Identity verification-based fraud is skyrocketing, causing financial institutions to scramble to oppose stolen identities, hacker passwords and unauthorized transactions.
Among the partnerships between PYMNTS Intelligence and Arculus, these are just some of the findings detailed in “Eliminating Identity-based Fraud, Banks Want Metal Cards”, which shows that 87% of banks reported an increase in certificate-based fraud.
As the level of complexity available to bad actors grows, hackers and fraudsters are exploiting every vulnerability in password-based authentication. This usually means the bank is catching up.
The problem is simple: the password is outdated. Cybercriminals armed with countless data breaches of theft certificates, allowing easy access to customer accounts. Phishing scams, social engineering and credential fill attacks rampant. In some cases, criminals don’t even need to steal physical cards to run out of their accounts, they just need the victim’s login details.
Enter the metal payment card, which is positioned as the latest weapon Banks continues to fight fraudsters.
Banks use next-generation metal cards to fight fraud surge
Metal bank cards are not only reserved for super rich smooth, status symbol cards. The next generation of metal cards has built-in biometric authentication and click verification technology, allowing users to approve transactions in real time. Think of it as two-factor authentication, but without the hassle of one-time code or the ease of hacking passwords.
According to the PYMNTS intelligence report, 77% of surveyed financial institutions see solutions like Tap-to-pauthenticate as a powerful new layer of security.
The appeal is clear: the client will not rely on a stolen pin or hacker-polluted password, but instead use a physical card to verify transactions, requiring their presence to work. After all, metal cards with authentication technology can be a difficult stop for many credential-based frauds. This added layer of security helps prevent cybercriminals from performing fraudulent logins or unauthorized transactions.
After all, the fight against fraud is turning into an arms race. As criminals develop more advanced hacking technologies, banks are under increasing pressure to innovate or suffer consequences. Metallic Identity Cards and passwordless banking may be the era of passwords’ more important responsibility rather than security measures.
As the financial industry moves towards a passwordless future, security experts warn that speed is crucial. With faster banks moving, the harder it will be for fraudsters to adapt to and exploit new vulnerabilities.
Read more: Banks strengthen their fight against stolen qualifications
Bank puts pedals on metal
PYMNTS smart data found that more banks prefer metal cards to automate technology (41%) (41%) (25%) than plastics. Banks that are more affected by fraud tend to have greater interest in metal cards and are expected to have a better impact on adopting the technology.
Larger institutions push adoption, with 69% of banks with over $100 billion in assets expressing a strong interest in metal cards. Adding to 23% of large banks that are somewhat interested, the large bank bank bank interest in metal payment cards has grown to 92%.
Clients expect seamless and secure banking experience and delaying migration away from passwords can leave institutions behind competitors that provide smoother, safer digital interactions. By proactively taking cutting-edge security measures, banks not only protect customers, but also establish themselves as industry leaders.
Bottom line? If banks want to ensure the safety of their customers, the days of relying on passwords have passed. For criminals who want to take advantage of outdated security measures? Your time is up.
