How NFTs, Crypto, and COVID-19 Pushes Away the Use of Passwords
Passwords have long been an archaic variety of access security. A recent survey showed that one in 10 people would rather get a passage or a filling than create a singular password for each online account they need.
But what hadn’t come under such scrutiny – or a minimum of until the NY Times broke the story – was the question: what happens after you forget the password to relatively new assets like cryptocurrency?
Stefan Thomas is the man who has two guesses left to work out the password to his IronKey, a tiny low Winchester drive that contains the private keys to his digital wallet. The matter is, Thomas can’t remember what the password is. And with an IronKey, there’s no push.
From account opening to transaction approval, consumers want a simple way to access as well as strong security. Let’s study the lasting effects of the pandemic and the way financial services companies are leading the charge in putting an end to passwords.
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COVID-19 and therefore the surge in online identity fraud
Most businesses are now operating a minimum of partially online, providing an ideal landscape for attackers looking to reap and exploit valuable data. It’s a lucid parallel that because the amount of sensitive information being passed online has increased, so has the number of attackers trying to intercept it.
For instance, bank branches are a mainstay of the street, bustling with activity from doing away with mortgages to day-to-day banking. Those branches couldn’t open during the pandemic, meaning customers were pushed to other channels, chiefly online and telephone, overnight. Plenty of companies won’t return to offering in-person experiences to the identical degree, continuing to figure with customers remotely. British street banks, as an example, are planning more branch closures for 2021 than in 2020, as lenders focus more on their digital offering. This implies that now quite ever, we want fail-safe know-your-customer and fraud prevention policies.
The added pressure from Bitcoin and NFTs
Fraudsters will often chase the foremost lucrative targets, so it’s unsurprising that these platforms are already seeing a surge in fraudulent attempts. But it’s not just identity fraud that investors must worry about. That’s where new NFT technology such as Defi NFT comes in to provide security at the backbone of blockchain technology, which is proven to prevent fraud.
Biometric technology because the new standard
Onboarding and biometric identification services that leverage AI and facial biometric analysis offer digital currency and trading providers the high assurance they have that their customers are who they are saying they’re, irrespective of where they’re within the customer journey. At the identical time, they provide a fast and simple way for users to verify their identity in an increasingly mobile-first world.
That’s why it’s time to maneuver beyond traditional passwords that let down for all parties by embracing the subsequent iteration of security and identity protection.