AuthenticationLet’s know why authentication is not enough for organizations to succeed against cybercriminals

Static authentication reuses a static password. This type of authentication only protects against attacks in which an imposter cannot obtain the authenticator. They are typically user-generated and work best when combined with another authentication type, such as a smart card or biometric control. The strength of the authentication process is highly dependent on the authenticator values and therefore how well they are protected in transit and while stored on the system.

Authentication factors can be classified into three groups password or PIN, a token, such as a bank card, and biometrics like fingerprints and voice recognition. The goal of challenge-response authentication is to limit the access, control, and use of digital resources to only authorized users and activities. Recent cyberattacks and extortion attempts on major third-party software can be done when compromised credentials are used to carry out account takeover (ATO) attacks.

Organizations must go through multiple steps to succeed against cybercriminals:

As per reports, 61% of data breaches can be traced back to compromised credentials. Many companies have invested in anti-fraud technologies to detect and mitigate these types of attacks against high-value targets, such as login and payment flows. But the Lapsus$ ransomware group conducted all of their ATO activity using stolen credentials and buying compromised account credentials until it finds one with source code access.

Cyberattacks now target identity construction systems like provisioning, device enrollment, password reset, and other account management systems. Online accounts are vulnerable to ATO fraud and bad actors targeting accounts they consider highly valuable. All these identity provider systems establish the basis for all access control, they are now attracting dedicated attention from cybercriminals.  Bad actors will use automated tools to engage in massive cyberattacks against websites.

However, fraudsters don’t always use automated tools for ATO fraud. They can gain access through phishing, call-center scams, man-in-the-middle (MITM) attacks, and Dark Web marketplaces. But now ATO is a weapon for many fraudsters. These frauds can be extremely difficult to detect considering the advanced tactics and randomness of different crime groups.

Generally, authentication is the process of verifying who someone is, whereas authorization is the process of verifying what specific applications, files, and data a user has access to. These types of access control layers are a good first defense against fraud. But fraudsters can easily bypass these tools. So, there must be a 2nd line of defense in the form of a detection system. Then only companies should consider going beyond who a user is and what they are allowed to do, and learns from what the user is actually doing.

Present companies are investing in identity graph technologies for many authentication and high-value flows. It provides a single unified view of customers and prospects based on their interactions with a product or website across a set of devices and identifiers. It is used for real-time personalization and advertising targeting for millions of users. Because Authentication is a static set of something you know, something you are, and something you have. But in a war against cyberattacks that are dynamic.

Identity graphs are a key solution for many advertising technology and marketing technology companies, as well as brand and marketing organizations, advertising agencies, holding companies, and web analytics providers. And it also helps you build customer data platform solutions with an emphasis on privacy regulation compliance. To succeed against dynamic cybercriminals, organizations must go multiple steps further and build a learning system that evolves overtime to keep up with attacker tactics.