Balance Cost, Simplicity For Apt Authentication Systems

Authentication systems at enterprises have been a subject of growing importance. With incidents reported on the compromise of the authentication set up, the alert levels of CIOs and CISOs have risen and hence they have started doing POCs for these systems. Biztech2.0 speaks with Jim Reno, CTO - Arcot on the importance of authentication systems.

What is the importance of authentication in the online space?

All activities done online that involve value, invariably start with authentication. Users logging on to an online banking site have to authenticate themselves before performing any kind of online monetary transactions.

This applies to logging onto social networking sites as well. Authentication is a must in any online activity that involves some kind of monetary or personal identity value, and therefore the strength of those authentications and the ability to use them effectively becomes a key element in their ability to prevent fraud.

In the case of authentication systems, how should CISOs balance cost and hosuing the right system?

CISOs are concerned about the growing risk profile and threats, but they are also concerned about their ability to meet those challenges in the way that is simple and acceptable for their customers and yet have a reasonable cost profile as well.

This creates some factors that are difficult for financial institutions to balance, because if they create a system that is extremely complex and difficult to use, then they run the risk of alienating their end customers. On the other hand, if the system is very sophisticated and expensive, it can be difficult to use and also the cost can be prohibitive.

I think CISOs are looking at an increasing number of threats against a user population that is not becoming sophisticated as quickly as the criminals are, in an environment where they also want to constrain costs. This creates a major problem for them to find the right balance.