Strengthening Security for E-Commerce With Reauthentication
As digital shopping grows, e-commerce platforms face the critical challenge of securing customer data. AuthenticID’s 2024 Mid-Year Fraud Report highlights that fraudulent transactions increased more than 73 percent in the first half of 2024, while account takeover (ATO) attacks rose by an astonishing 354 percent in 2023. These trends underscore the essential need for robust security measures. Reauthentication — a process that prompts additional identity verification during key actions — strengthens security without disrupting the user experience.
Why Reauthentication Matters
The surge in ATO attacks and fraud highlights the need for proactive protections, as compromised accounts lead to unauthorized purchases, data breaches, and a decline in customer trust. For example, when customers access accounts from unrecognized devices or make large purchases, reauthentication steps like biometric verification or multifactor authentication (MFA) confirm identity. Nearly 40 percent of consumers reported data exposure in 2024, validating the need for heightened security. Reauthentication at critical points helps protect sensitive information and limit unauthorized actions.
As fraud tactics evolve, reauthentication can adapt to sophisticated threats, such as advanced phishing attacks designed to steal account details. This agility is essential for businesses facing shifting fraud risks and rising customer expectations.
How Reauthentication Balances Security and Experience
Reauthentication aligns security checkpoints with high-risk actions, keeping routine shopping seamless. For instance, customers on recognized devices may face minimal interruption, while high-value purchases might prompt reauthentication via biometrics or MFA.
Modern MFA options — including SMS codes, app-based authentication, or facial recognition — enhance security without overcomplicating the customer journey. Incorporating these solutions helps eliminate password fatigue — i.e., the stress and frustration associated with managing multiple passwords — reducing the frequency with which users need to enter them. Biometric verification methods, for instance, offer rapid validation, combining both effectiveness and convenience. With 65 percent of consumers now preferring biometrics over passwords, these tailored checkpoints streamline the authentication process and provide a fast, secure experience.
Maximizing E-Commerce Success Through Reauthentication
Beyond preventing fraud, reauthentication offers e-commerce platforms additional advantages:
- Reduced Financial Losses: Targeted reauthentication secures transactions without disrupting routine shopping, preventing unauthorized access at critical touchpoints and minimizing financial risks.
- Boosts Compliance and Trust: Reauthentication supports data protection compliance, offering legal protection and reassurance to customers. This helps e-commerce businesses adhere to regulations and builds consumer confidence in their commitment to safeguarding personal data.
- Customizes Security for Business Needs: E-commerce platforms can adjust reauthentication to specific risk levels, aligning security with business and customer needs. This adaptability allows for a tailored approach that considers the unique challenges and preferences of different customer segments.
Reauthentication as a Trust-Building Tool
Customers prioritize security alongside convenience in their online shopping experiences. E-commerce platforms that implement visible security measures, like reauthentication, can cultivate lasting relationships with their customers, particularly as 39 percent of consumers report lost confidence in businesses’ data protection.
By adopting a multilayered security strategy that incorporates reauthentication, e-commerce businesses can enhance customer safety and provide peace of mind. The rising preference for biometric authentication signals a shift toward viewing security as integral to the shopping experience. This proactive approach to security fosters trust and loyalty, encouraging customers to return time and again.
Blair Cohen is the founder and president of AuthenticID, a disruptive and transformational identity proofing and fraud prevention technology company.
Blair Cohen is the founder and president of AuthenticID, a disruptive and transformational identity proofing and fraud prevention technology company.
As a dynamic technology entrepreneur with over 30 years of experience, Blair is future-focused and can anticipate industry needs, identify pain points, and then build systems to help organizations improve their bottom line. Prior to turning his focus to solving the biggest challenge on earth, identity, Blair launched several other groundbreaking enterprises and pioneering technology products. Named by One World Identity (OWI) as one of the 100 Most Influential Identity Experts globally, his articles can be found in publications like Fast Company. He frequently speaks at industry conferences focused on identity, risk management, and information security.
