Risk-based Authentication Market Size, Share & Industry Analysis By Offering (Software, Services), By Deployment (On-premises, Cloud), By End User (BFSI, IT & Telecommunication, Retail, Government, Healthcare, Others) And Regional Forecast, 2024-2032

Risk-based authentication, also known as adaptive authentication, helps in preventing fraud by determining the risk level for each and every financial transaction. It basically prevents account takeover fraud, mobile and online fraud attacks by matching the authentication to the level of risk involved. For banks, risk-based authentication is a vital element to maintain customer loyalty and unlock growth opportunities as it lessens friction to provide an enhanced customer experience. As part of a bank's digital transformation, it applies the precise amount of security for each transaction on the basis of level of risk, reducing unnecessary identity verification steps. Besides banks, it is used on eight high-traffic online services such as Facebook, Amazon, Google, GOG.com, LinkedIn, Twitch, iCloud, and Steam. Government agencies use as well as promote risk-based authentication for secure transactions.

With the growing popularity of digital banking, the mobile and e-banking channels are increasingly used to perform transactions. This opens an opportunity to cybercriminals those trying to compromise a user’s bank accounts. Also, the growing trend of bring-your-own-device (BYOD) practices and internet of things (IoT) is creating a potential risk. In the past, there have already been a handful of incidents where IoT endpoints have been compromised by malware. Risk-based authentication could help bound a hacker’s ability to inject malware by restricting their access immediately.

Apart from established players in the market, emerging firms are gaining recognition for their risk-based authentication solutions. For instance, companies such as UnifyID and Callsign received significant funding in 2017. In the first funding round itself, UnifyID gained USD 20 million from New Enterprise Associates; whereas Callsign pulled a whopping USD 35 million in Series A funding from Accel Partners.

IMPACT OF COVID-19 ON RISK-BASED AUTHENTICATION MARKET

The shift to work from home practices and surge in communications have increased the risk of cyberattacks. Organizations’ perimeter security always need real-time risk analysis and on surveillance for protect both physical and digital entry points from breaches. Besides, as businesses are onboarding more devices and remote employees, contractors, partners, and other users, the number of people requiring access to critical systems is growing exponentially. WHO (World Health Organization) conveyed that 450 active official email credentials as well as thousands of other credentials were leaked online – all linked with professionals working to minimize the COVID-19 impact. In the Czech Republic, during COVID-19, a cyberattack ceased all urgent surgeries. Likewise, a food delivery company became a victim to a DDoS attack in Germany. In such scenario, risk-based authentication can help to transparently increase security.

KEY INSIGHTS

The report will cover following key insights:

• Micro Macro Economic Indicators


• Drivers, Restraints, Trends and Opportunities


• Business Strategies Adopted by the Players


• Impact of COVID-19 on Risk-based Authentication Market


• Consolidated SWOT Analysis of Key Players

REGIONAL ANALYSIS

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The North America is expected to behold maximum market share with U.S. being the most prominent contributor to the region's growth. The companies in the region are dependent on electronic data and computer networks to conduct their regular operations. Growing financial and personal information is also stored and transferred online.

In Europe and Asia Pacific countries, the substantial increase in the rise in data breaches across various industries is forcing companies to adopt robust authentication solutions. Europe being GDPR compliant region, risk-based authentication is helping organizations to improve their overall compliance with the regulations like the Payment Services Directive 2 [PSD2]. The Middle East and Africa is expected to show significant growth during the forecast period owing to growing investment by gulf countries in security solutions to protect their data from attacks.

KEY PLAYERS COVERED

The report will include the profiles of key players such as IBM Corporation, CA Technologies, Micro Focus, Okta Inc., Gemalto N.V, Vasco Data Security, SecureAuth Corporation, RSA Security, Entrust Datacard, Lexisnexis, Cross Match Technologies, Inc., Equifax, Ping Identity, Forgerock, among others.

SEGMENTATION

KEY INDUSTRY DEVELOPMENTS

• May 2021- Experian launched an improved version of CrossCore, a combination of identity proofing, risk-based authentication, and fraud detection in a single cloud platform. CrossCore empowers businesses to access, connect, and orchestrate decisions across multiple solutions easily. The latest version of CrossCore has the capabilities to deal with account opening frauds and account takeover fraud, along with acting as backup for fraud data sharing for a variety of fraud indicators.


• April 2019- Okta, Inc. launched new risk-based authentication solution that leverages machine learning to deliver ease of use, greater security, and automated detection of identity-based attacks. It delivers panoramic insights into company’s employees, customers, partners, while also delivering a means for transparent security controls.