The ever-growing retail industry has seen significant changes in recent years, along with the continual developments in technology. Countless companies could take advantage of the extensive reach that social media and search engines offer in publicizing their brand. In addition, numerous enterprises created and adopted innovative business models that make transactions more efficient for the consumers.
An example of this is the sector of sharing economy, which is mainly designed as a peer-to-peer (P2P) based activity conducted through online platforms. Multiple share-based organizations, such as Uber and Airbnb, have become popular as ideal alternatives to traditional ways of purchasing goods and services in the past decade. This is why industry experts forecast that the value of sharing economy to reach $335 billion by 2025.
But since sharing economy operate on a P2P system, it also became an ideal sector for cybercriminals to target. Building consumer trust is one of the essential factors for a share-based business to be successful, and numerous fraudsters take advantage of this to swindle confidential information and money from either the enterprise or their clients. This is why many corporations invest in sophisticated digital security methods, such as biometric identity authentication, to keep bad actors at bay.
By abiding by the modern online security standards, companies in the sharing economy can reap the benefits of multi-factor authentication (MFA). This can replace traditional identity proofing methods, such as knowledge-based credentials like passwords. Hackers already have numerous workarounds for conventional cybersecurity measures, so replacing them would make it harder for swindlers to penetrate the software.
This will significantly increase the protection of networks and mitigate any risks and concerns in data privacy. It will also enhance the brand’s capabilities of providing a top-notch user experience by minimizing the friction clients experience when they use a website or application.
To learn more about the sharing economy and the need for identity verification, check this infographic provided by authID.