Five Things That Digital Customers Expect From Their Bank
First – What is MFA?
Multi-factor authentication (MFA) is a security method that requires users to provide two or more authentication factors to verify their identity before gaining access to data, services, and applications.
There are four categories of factors: something you know (a username and password), something you have (a token or PIN), something you are (biometric features like fingerprints or iris scans), somewhere you are (geolocation).
Cryptocurrency is frequently the focus of mainstream media reporting. Although we mostly hear about the questionable practices of crypto coin founders and their ultimate collapse (think FTX, OneCoin, and BitConnect), cryptocurrency has an avid user base of loyal enthusiasts. And that’s not surprising considering the many benefits of cryptocurrency for its users, who not only benefit from added security and anonymity when it comes to online transactions – but also save a significant amount in transaction and payment fees by cutting out intermediary financial providers.
It shouldn’t come as any surprise then that iGaming providers are also jumping on the crypto bandwagon by establishing game platforms – such as crypto casinos. These facilitate cryptocurrency payments and therefore appeal to a new customer segment of cryptocurrency users. Crypto casinos have another added benefit to standard online casinos. They also employ blockchain technology in their games. This is a real advantage for crypto casino gamers since it allows for randomised game selection – with winning games being determined by a random number generator. What’s more, blockchain ledgers – which can’t be tampered with – keep a record of all actions. This makes it nearly impossible for casinos to rig games in their favour.
Advantages of Crypto Transactions for Casinos
Although the advantages of crypto casinos are clearly evident, just what do casino operators have to gain? First and foremost, they have the potential to acquire a significant number of new customers. According to a 2018 study conducted by the Worldwide Asset eXchange, 55 per cent of millennial gamers also own crypto – and 80 per cent of this gaming segment is also interested in using cryptocurrency for gaming transactions. This statement was backed up by a later study conducted by BusinessWire, which stated a 40 per cent increase in new customers after cryptocurrency payments were implemented.
Cryptocurrencies are also the de facto global currency. This means that crypto casinos have easy access to an international community of players – without the hassle of having to accommodate local currencies and local payment service providers. This helps streamline financial transactions, making them faster and, of course, more affordable (as previously mentioned).
Yet there’s another advantage too. Cryptocurrencies – which rely on blockchain technology – are inherently secure since all transactions are logged in a digital ledger. As such, crypto casinos can avoid the all-too-common problem of chargeback fraud that plagues many online service providers as well as online retailers.
Using MFA to Ensure a Highly Secure iGaming Environment
However, crypto casinos shouldn’t make the mistake of relying on the innate security of the blockchain to ensure overall customer security. This is because – although blockchains ensure secure transactions – gamers’ accounts are still vulnerable to hacking and takeovers. And if user accounts are compromised, cybercriminals can gain access to personal information and casino wallets, where cryptocurrency is stored. So, how can crypto casinos ensure security?
One of the best ways to ramp up security is by implementing multi-factor authentication (MFA). Having a multi-step identification and authentication process protects against stolen data since the likelihood of a criminal having a username and password as well as a security PIN or biometric data is highly unlikely.
Crypto casinos can go one step further by implementing MFA with passwordless authentication. It’s a well-known fact that users often opt for the same password across numerous different apps and services – making them the weakest link in the security chain. Foregoing the password altogether in favour of an alternative solution would automatically eliminate the risk of stolen passwords and the frustration of resetting or creating passwords that are adequately secure. This can be accomplished by replacing passwords with biometric access so that users can gain access to their accounts with their fingerprints or a facial scan. This security method is not only more difficult for cybercriminals to circumvent – it’s also more convenient and user-friendly.
How to Get Started
With the influx of customers that cryptocurrency promises to attract to the online gaming industry, it’s essential for crypto casinos to have a robust, transparent, and easy-to-use security infrastructure if customer trust is to be garnered and maintained. MFA is the best answer to the question of online security across the board. Especially in an industry that handles the private and financial data of thousands of daily users and countless transactions.
It's crucial for crypto casino providers to find the right MFA tool for their unique set of needs. More specifically, companies that decide to implement authentication processes generally have to choose between ultra-secure, multi-factor authentication sequences with high friction or a login scenario with low friction and minimal security. Adaptive authentication from Nevis solves this dilemma by letting users add or remove an authentication step dynamically during the login sequence – depending on the underlying context information or business rules. This makes it easy to add additional security measures for more sensitive transactions while simultaneously maintaining a standard set of security measures for less sensitive transactions. Furthermore, Nevis offers off-the-shelf second-factor functions (like one-time passwords, OATH/TOTP, SMS TAN, email TAN) as well as its own passwordless, mobile authentication solution. This makes sure customers can tailor the solution to accommodate their specific requirements.
Ultimately, crypto casinos have a built-in advantage when it comes to transaction security. Yet that doesn’t make them completely safe from the threats posed by cybercriminals and hackers. A little extra security will go a long way towards establishing a safe gaming space and lasting customer loyalty.
