What is Spoofing? Definition, Types, and Key Insights

Strengthening an organization's security requires all the major stakeholders to be familiar with the common techniques attackers use. Spoofing is one of the techniques that attackers commonly use to tempt their target into sharing sensitive information. A recent study revealed that over 

84% of organizations faced at least one phishing attempt in 2022

, a 15% increase from the previous year, with most attacks using spoofing techniques to target victims.

To help protect organizations from these attacks, this article will explore everything you need to know about spoofing, including the common types, how it relates to phishing, and how you can prevent it using various solutions. Let’s start with the basics of spoofing to ensure we are all up to speed.

What is Spoofing? Definition and What Does It Mean

In simple terms, spoofing refers to the act of impersonating another individual or system to compromise targets into sharing the information needed by attackers. This fraudulent tactic has been around for more than two decades and is used by attackers to manipulate identity verification processes, often leading to unauthorized access to sensitive information of the victims. Such information can include login credentials to online accounts, credit card information, and more. 

To successfully execute a spoofing attack, hackers masquerade as a trusted source to trick victims into revealing personal details, clicking on malicious links, or downloading harmful software. This is usually done using several channels, including email, SMS, phone calls, and more. Understanding spoofing is crucial for implementing effective security protocols, especially in industries such as banking and finance, which have become major targets in the last couple of years. 

What is the Difference Between Phishing and Spoofing?

Phishing and spoofing are closely related tactics used by cybercriminals, but they have distinct differences. Phishing specifically involves fraudulent attempts to acquire sensitive information by masquerading as a trustworthy entity, often through emails or messages designed to lure victims into revealing personal data. 

On the other hand, spoofing includes a broader range of deceptive techniques, including the manipulation of caller ID, email headers, or IP addresses to impersonate legitimate sources. While phishing often uses spoofing methods to increase its effectiveness, not all spoofing is related to phishing. 

There are several types of spoofing, each using different methods based on what the attacker believes will be most effective for their targeted victims. Let’s explore the nine common types of spoofing that most organizations face. 

IP address spoofing is when an attacker changes the IP address to make it seem like their computer is trusted. This tricks other computers or networks into thinking the data comes from a safe source, allowing the attacker to gain access or avoid detection. Attackers use this technique to avoid being blocked by security systems that may have already blacklisted their IP addresses. 

This lets attackers get around security checks and launch denial-of-service attacks. A denial-of-service attack (DoS) floods a system with too much traffic, making it slow or unusable for real users. The first line of defense that most security tools use to deal with attacks like phishing is to blacklist the IP addresses that are known to be from malicious attackers. So, attackers use IP address spoofing to bypass such measures. 

MAC address spoofing is when the attacker changes the unique ID (called a MAC address) assigned to a device's network connection. This technique allows attackers to bypass security measures that rely on MAC address filtering, such as those used in corporate networks. For example, an attacker can alter their device's MAC address to mimic the MAC address of one of the devices on the internal network, potentially leading to unauthorized access and stealing sensitive information.

This type of spoofing occurs when an attacker corrupts the Domain Name System (DNS) cache of a device or server to redirect users to fraudulent websites instead of the legitimate ones they intended to visit. The goal of DNS spoofing is to make victims think they have accessed a legitimate website and then share their sensitive information, such as login information, when trying to create an account or payment information if the site involves some sort of payment. 

Email spoofing is a common technique where attackers send emails that appear to originate from a legitimate source but are, in fact, fraudulent. This method is commonly used in phishing attacks, where attackers try to deceive recipients into revealing sensitive information or clicking on malicious links. Real-world examples of email spoofing in banking include instances where customers receive emails that appear to be from their bank, prompting them to update their passwords or verify their accounts through fake links. 

SMS spoofing involves attackers sending text messages that appear to come from a legitimate source, such as a bank or financial institution. These messages often contain links or prompts that trick recipients into revealing personal information or downloading malicious software, which attackers can later use to steal data or even take control of the device. It is important to note that most companies in the banking sector still use SMS to update their users, so attackers exploit this to carry out spoofing attacks.

With this type of spoofing, attackers use sophisticated tools to manipulate the caller ID information transmitted to the recipient's phone, making it appear as though the call is coming from a trusted source. Once the victim is deceived, they may easily share sensitive information over the phone, such as banking details or personal identification numbers. Attackers often gather enough information about their victims to make the conversation seem more convincing.

Identity document spoofing is a tactic used by attackers to create counterfeit identification documents that appear authentic. This process often involves using advanced printing techniques and software to replicate the look of legitimate documents, such as driver's licenses or passports. Attackers may obtain personal information about their targets through social engineering or data breaches, allowing them to forge highly convincing documents. Attackers may then use these spoofed IDs to bypass identity verification processes at banks or financial institutions, allowing them to commit fraud, open accounts, or access sensitive information.

With this technique, attackers use high-quality photos, videos, or 3D masks of their victims to trick facial recognition systems into believing they are legitimate users. For example, an attacker might use a 3D mask that mimics their target’s face in front of a camera used for 

, hoping to gain access to secure systems or accounts. This can compromise security, especially in sectors like banking, where some organizations still use facial recognition systems that lack advanced features like liveness detection.

Voice biometrics spoofing involves techniques that attackers use to mimic a person's voice to bypass voice recognition systems. Attackers can execute these attacks by recording the target's voice and using audio manipulation software to recreate it or generating synthetic voice patterns using advanced algorithms. These spoofing tactics can pose significant challenges to maintaining security with voice recognition systems, particularly in financial institutions where voice biometrics may be used for customer authentication. 

Organizations can detect and avoid spoofing by implementing the following strategies:

Preventing spoofing requires organizations to adopt best practices that focus on strengthening their security frameworks, such as: 

We hope this article has helped you understand the basics of spoofing and how organizations can implement measures to detect and prevent it. Recognizing the different types of spoofing is crucial for effectively combating these attacks. With this knowledge, organizations can adopt the appropriate strategies to address potential threats. For example, organizations that rely heavily on email communication should implement strict measures to ensure only legitimate emails reach their team’s mailboxes. Similarly, those using facial recognition for authentication should choose systems that incorporate liveness detection to prevent facial biometrics spoofing attacks.

Understanding the Risks of One-Time Passcode (OTP) Authentication

Since the 2000s, One-Time Passcode (OTP) authentication has been a popular method for verifying online transactions in the banking, finance, and fintech industries. By generating a unique code for each transaction or login attempt, OTPs add an extra layer of security (usually in the form of two-factor authentication or 2FA) beyond traditional passwords. Another reason for the popularity of OTP was its convenience for users. 

However, as cyberattacks become more sophisticated, OTP authentication—particularly when delivered via SMS is becoming increasingly vulnerable to threats like SIM swapping. Recent data shows that SIM-swapping complaints to the 

 have doubled, increasing from 275 in 2020 to 550 in 2023. These growing risks raise concerns about the reliability of OTPs as a secure authentication method, especially in sensitive sectors like finance and banking. 

In today’s article, we will discuss the security vulnerabilities of OTPs. We will also explore why alternative authentication methods like biometric verification are a more secure solution for protecting sensitive transactions. Let’s kick things off with the basics of one-time passwords to ensure everyone is up to speed. 

OTP (One-Time Passcode) authentication is a security method used to verify a user's identity during online transactions. OTPs are typically used in combination with another authentication method like a password, making it a form of two-factor authentication (2FA). Unlike traditional passwords which remain the same until changed, an OTP is a unique code that is generated for a single use. 

To generate an OTP, a secure algorithm is used to create a random string of characters that are hard to guess. This code is then sent to the user through a delivery method such as SMS, email, or a dedicated app. Once the user enters this code, it becomes invalid and cannot be reused for future verification. These passcodes also have a time limit within which they can be used after which they become invalid—a feature that was introduced to further enhance their security. 

There are different ways OTPs can be delivered to users, each with its own advantages and limitations. Let’s explore some of the common methods used in the banking/finance industries:

Despite their popularity, one-time passcodes are associated with many risks, especially when delivered via SMS and email. Let’s explore the common risks associated with OTP authentication.

The Limitations of SMS-Based OTPs in Banking

SMS-based OTPs, though widely used in banking and fintech, come with significant limitations that reduce their effectiveness in securing financial transactions.

Due to security risks surrounding OTP authentication and other limitations like the high costs, efforts have been put in place over the years to come up with better alternatives. Two of the most promising alternatives are biometric verification and passwordless authentication. Let’s explore them in detail. 

Biometric Verification with Liveness Detection

Biometric authentication uses unique human characteristics like fingerprints, facial recognition, voice patterns, or iris recognition to verify a user's identity. These methods offer higher security because they are based on traits that are unique to each individual and difficult to replicate. It has been proven that even twins have some differences in the physical structure of fingerprints, faces, or irises. Unlike OTPs, which can be intercepted or stolen, biometric data is much harder for attackers to compromise.

However, one of the drawbacks of using biometric authentication methods like facial recognition is that attackers can attempt to spoof biometrics using photos, videos, or voice recordings of legitimate users. This is where liveness detection comes into play. Liveness detection ensures that the biometric input is coming from a real person who is physically present at the time of authentication. Biometrics with liveness detection can be an effective and secure authentication method that can be used alone or in combination with passwords for 2FA. 

Passwordless authentication is an emerging security technique that allows users to verify their identity without the need for traditional passwords or OTPs. In a passwordless system, users authenticate themselves through methods such as biometrics, security keys, or links sent to trusted devices or apps. This eliminates the need to remember or manage passwords, which reduces risks like phishing attacks that are associated with passwords and OTPs. 

The Future of Secure Authentication in Banking

With the increasing threats associated with passwords and one-time passcodes, it’s clear that financial institutions need to adopt more advanced authentication techniques. Banks and fintech companies should consider moving from OTPs and passwords to adopt advanced authentication solutions like biometric verification and other passwordless authentication methods for both primary and multi-factor authentication (MFA). 

Multi-factor authentication, which requires users to provide two or more verification factors, offers a higher level of security. MFA can be used with adaptive intelligence—where authentication methods adjust based on user behavior, device information, or risk level. 

Players in the banking and fintech sectors can also adopt biometric verification with liveness detection. This method provides a robust defense against many of the current vulnerabilities faced by OTPs. The good news is that most of the modern consumer devices support fingerprint scanning and have advanced cameras that can be effective for facial recognition with liveliness. 

However, it is also crucial for different players to consider privacy and security concerns with biometrics in the event that attackers gain access to a user’s biometric data that is stored on servers. That’s where more advanced methods like 

 technology come in. With this technology, users can access their accounts using facial recognition but without having their data stored anywhere on the internet. 

One-Time Passcodes (OTPs) were once a popular and convenient method for securing online transactions. However, as cyberattacks have become more sophisticated, their vulnerabilities have become increasingly evident, particularly when delivered via SMS. Threats like SIM swapping and SS7 protocol attacks have made OTPs less reliable, especially for companies in sensitive sectors like finance and banking.

To address these risks, financial institutions should consider alternatives like biometric verification with liveness detection and passwordless authentication. These methods offer stronger security, improved user experience, and reduced costs compared to OTPs. By adopting advanced authentication techniques, banks and fintech companies can better protect their customer's sensitive information and stay ahead of evolving cyber threats.

How Passwordless Authentication Works: A Complete Guide

Verizon's 2023 Data Breach Investigations Report

, over 80% of data breaches are caused by weak or compromised passwords. This risk is even greater in industries like banking and fintech, which are frequent targets of cyberattacks. 

That's where passwordless authentication comes in. Several studies have proved that businesses using passwordless solutions can significantly reduce authentication-related breaches while also enhancing user experience. If you want to learn more about passwordless authentication and how it works, you're in the right place. By the end of this article, you will understand how passwordless authentication works and why it is the best solution for protecting your business's digital assets.

Passwordless authentication is a security method that allows users to access their online accounts and other digital assets without using traditional passwords. With passwordless authentication, users validate their identity through other methods such as using their fingerprints, facial recognition, and security keys. Passwordless authentication is considered more secure because it eliminates most of the knowledge-based risks associated with traditional passwords. 

How Does Passwordless Authentication Work?

 factors to verify a user's identity without requiring them to recall or input a password.

However, it doesn’t mean that knowledge factors can’t be used. Most organizations will still use a password or PIN as the first authentication factor, but then use a second, passwordless factor as an added security layer. This is known as multi-factor authentication (MFA).

Benefits of Passwordless Authentication 

Some of the benefits for the adoption of passwordless authentication solutions include: 

Challenges of Passwordless Authentication

Passwordless authentication can be implemented in various ways depending on the hardware options available to the target users. Let’s explore some of the popular types of passwordless authentication, along with their pros and cons.

Possession factors are authentication methods that rely on something the user physically has. Common examples include: 

Biometric authentication uses unique physical characteristics of the user to verify identity. Common forms include fingerprint, face, and iris recognition. These methods leverage the uniqueness of individuals to provide a high level of security. Let’s explore how each of these methods works. 

As discussed throughout this article, traditional passwords are becoming increasingly vulnerable to modern cyber threats. For this reason, passwordless authentication solutions have emerged as a powerful solution. Passwordless authentication eliminates the reliance on easily compromised passwords, providing enhanced security, improved user experience, and reduced costs for businesses. But just like another new technology, passwordless authentication solutions present challenges like adoption barriers and potential user privacy risks. However, their overall benefits significantly outweigh the drawbacks. 

, in general, have been game-changers for cybersecurity in the past couple of years. With facial recognition, consumers can easily access their online accounts, apps, or devices by simply having their faces scanned. This reduces the friction of accessing their favorite products without compromising security. 

A poll conducted by VISA showed that over 

86% of respondents prefer using biometrics

, such as facial recognition, over standard passwords to verify their identity or make payments. The effectiveness of facial recognition is also evident in its widespread adoption, with 

over 131 million Americans using it every day

 to access their favorite apps, online accounts, or devices. 

In today’s article, we will discuss the current state of facial recognition technology, including its real-world applications and benefits. We will also explore the challenges of this authentication technology that different players need to resolve to make it even better in future. So, let’s jump right in!

Facial recognition is a biometric authentication technique that uses the unique features of an individual's face to identify or verify their identity. This technology first gained traction in the early 1990s when government agencies like the Defense Advanced Research Projects Agency (DARPA) and the National Institute of Standards and Technology (NIST) showcased facial recognition programs. 

These early programs demonstrated the potential of facial recognition technology, especially for security and identification purposes. While it was initially developed for government, military applications, and enterprise markets, facial recognition began to gain significant popularity in the consumer market during the 2010s. 

Advances in computing power, machine learning algorithms, and image processing capabilities made it feasible to implement facial recognition in everyday consumer products. Today, facial recognition is widely used in various consumer devices, with one of the most notable examples being Apple's iPhone (through Face ID) and Windows Laptops (through Windows Hello). 

Facial recognition involves capturing an image of a person's face and analyzing its features such as the distance between the eyes, jawline, the shape of the nose, and the contours of the cheekbones. These extracted features are converted into a digital template, which is stored in a secure database online or on a user’s device. In the case of Keyless which uses more secure facial recognition tech, this data is converted into a unique cryptographic key to ensure more privacy. 

When authentication is required, the system captures a new image of the user's face and compares it to the stored template. If the new image matches the stored template, the system grants access or confirms the user's identity. The accuracy of facial recognition has been getting better over the years with studies putting 

the accuracy of the top 100 algorithms over 99.5%

. With this level of accuracy, most facial recognition technologies can differentiate individuals during authentication even if they are identical twins. 

Some of the real-world applications of facial recognition include the following: 

Facial recognition in payment systems enhances security and convenience by allowing users to authorize transactions using their faces. This technology minimizes fraud risk since replicating someone's facial features is challenging for cyber criminals. Using facial recognition is also convenient for users and it speeds up the payment process. If the system requires a password as an alternative authentication method, users are more likely to create a stronger one, knowing they can also use the more convenient facial recognition.

Let’s explore some of the reasons facial recognition is being widely integrated into several products today. 

Facial recognition technology raises significant privacy concerns as it involves capturing and analyzing biometric data. Users may worry about how their facial information is collected, stored, and used, potentially leading to unauthorized surveillance or misuse. Proper management and robust security measures are crucial to protect this sensitive data from breaches and unauthorized access. Solutions like Keyless’ 

 are solving this by storing the cryptographic key of the biometric data instead of the raw data. 

While facial recognition enhances security, it is not immune to risks. Sophisticated attackers might use techniques like deepfakes or high-resolution images to spoof the less robust facial recognition system. Additionally, if biometric data is compromised, it cannot be changed like passwords, potentially causing long-term security issues.

Some facial recognition systems can struggle in varying environmental conditions, such as poor lighting or obstructed views. Changes in appearance (e.g., facial hair, glasses) or background noise can also impact the technology's performance and accuracy.

Public acceptance of facial recognition technology can be mixed. While some users appreciate the convenience, others may have concerns about privacy and surveillance. Building trust through transparent practices and addressing these concerns is important for wider adoption.

Will facial recognition replace passwords?

Facial recognition is already replacing passwords in several ways. For instance, platforms that use the keyless zero knowledge biometric authentication system no longer need their users to create passwords when registering with them. Facial recognition offers a passwordless authentication method that can reduce the risks associated with password theft and management. 

Why do businesses use facial recognition solutions?

Businesses use facial recognition solutions to improve security, streamline access control, enhance customer experiences, and prevent fraud. It helps in efficiently managing employee access, securing sensitive areas, and offering a seamless authentication process for customers and internal users.

In its current state, facial recognition is generally considered safe due to its use of unique biometric data, which makes unauthorized access difficult. However, concerns about privacy and data security exist, but these are being addressed by using advanced solutions that do not store users' raw biometric data.

With facial recognition, consumers can easily access their online accounts, apps, or devices with a simple selfie.

Facial Recognition: applications, benefits and challenges

Account takeover (ATO) fraud is becoming an increasingly common and dangerous threat in the banking, finance, and fintech industries. Even biometric authentication methods once considered secure are now being compromised by fraudsters. According to 

, biometric fraud rates in 2023 have doubled compared to 2022, highlighting the need for advanced security measures, such as liveness detection, to counter evolving fraud tactics.

Technologies like AI and advanced computing are making it easier for cybercriminals to automate credential stuffing, data mining, phishing, and social engineering attacks. If you’re keen to learn more about how your organization can protect itself and its customers against account takeover fraud, this article is for you. 

In this article, we will walk you through how ATO fraud happens, its impact, and how you can use cutting-edge security solutions provided by Keyless to protect your company. Let’s start with the account takeover definition and how it happens. 

Account takeover is a type of cybersecurity threat where attackers gain unauthorized access to a user's account. Access to user accounts is often gained through stolen credentials or exploiting security vulnerabilities in the system. After gaining access, attackers can perform various fraudulent activities, such as transferring funds, making unauthorized purchases, or extracting sensitive information. ATO attacks can affect various types of accounts, including banking, email, social media, e-commerce, and more.

 is among the most well-known ATO attacks in recent history. In this attack, hackers gained access to more than 100 million customer accounts and credit card applications. The attackers could view and exfiltrate sensitive information, leading to significant financial and reputational damage for Capital One. As a result of this breach, the organization was fined $80 million and made customer settlements of over $180 million. 

Overall, account takeover attacks can have a huge financial impact on the affected organizations and their customers. The 2024 AARP & Javelin Fraud Study revealed that account takeover fraud resulted in over $13 billion in losses in 2023 up from $11 billion in 2022. In addition to financial losses, these attacks also lead to reputational damage to the affected organizations. 

Before diving into the solutions to account takeover fraud, it is important to first understand how these attacks are executed. So, let’s discuss the common methods that enable account takeover fraud:

Now that we are familiar with ATO fraud, let’s walk you through some of the effective prevention strategies you use to protect your organization and users from being the next victim. 

MFA is one of the most effective ways to prevent ATO attacks as it adds an extra hurdle for attacks to skip before gaining access to a user account. With MFA, a user is required to provide more information about themselves than just the password and username. Some common methods used include sending SMS and email codes, authenticator apps, biometric verification, passkeys, and more. However, for more effective security, it is best to use phishing resistant methods such as passkeys, authenticator apps, and biometrics. More about these later. 

Organizations can use AI and machine learning to detect unusual activities in their systems. By analyzing user behavior patterns, these technologies can identify anomalies that may indicate account takeover attempts. For instance, if a user's account suddenly logs in from an unusual location or tries many login attempts, the system can flag this activity or require MFA before proceeding. Early detection of these anomalies can help prevent attacks or minimize their impact by enabling a quick response to potential threats.

Even with all the security tools and technologies in place, user education and awareness remain one of the most important strategies for preventing account takeover fraud. Organizations need to educate their internal users and customers about the risks associated with ATO and what they should do to avoid being victims of these attacks. Having an educated user base makes it harder for attackers to execute threat activities like phishing and social engineering. 

Using MFA methods like biometrics can effectively prevent ATO attacks by adding an extra layer of security. However, some of these methods are not convenient, expensive, or raise user privacy concerns since they involve collecting and storing sensitive personal data. This is where Keyless authentication solutions come in. Let’s explore the Keyless solutions to authentication that can effectively prevent ATO attacks without compromising the user experience and privacy.  

Keyless uses proprietary facial biometrics that can be used on any device with a front-facing 720p camera. 

 involves capturing and analyzing the unique features of a user's face and then creating a mathematical representation of their facial characteristics for authentication. 

The facial biometrics pipeline includes liveness checks, face detection, and face recognition to ensure a high level of accuracy and security. Keyless’ biometrics are also certified to FIDO Alliance’s biometrics standards, which gives an extra layer of assurance regarding the reliability and security of our biometric authentication methods.

To ensure user data privacy, Keyless uses secure multi-party computation (MPC) to process biometric data securely and privately. In MPC, multiple parties can compute a function over their inputs without revealing the inputs themselves. This simply means that neither the cloud service provider nor Keyless can access a user’s raw biometric data.

Traditional multi-factor authentication (MFA) methods, such as SMS and email OTPs, have several vulnerabilities that attackers can exploit to take over user accounts despite having MFA enabled. That’s why some organizations are resorting to using more secure MFA methods like hardware tokens in their systems. However, using hardware tokens is expensive and inconvenient to the users despite being very secure. Keyless solves these two problems using its secure, convenient, and cost-efficient MFA solution

 through a simple selfie combined with device authentication. Unlike traditional methods that rely on shared secrets or hardware sensors, our technology verifies a user’s identity without requiring the use of local biometrics hardware like FaceID. Instead, we use passive liveness detection and independent verification of the user’s device and facial biometrics. This method ensures that both authentication factors are distinct and effective, without relying on device-specific hardware or sensors.

That means even users who don’t have access to expensive devices with sophisticated Face ID technology can still use our facial recognition solutions without compromising their security. By combining device and facial recognition in a single action, Keyless reduces the friction associated with traditional MFA methods and eliminates the need for costly MFA methods like hardware tokens.

Account takeover fraud is a growing concern, with cybercriminals now using increasingly sophisticated tactics that may be hard to detect by unsuspecting users. To deal with sophisticated ATO attacks, organizations must implement robust security measures. Multi-factor authentication, particularly phishing-resistant methods like biometrics, is essential. Behavioral analytics and user education are also crucial components of a comprehensive defense. 

Keyless offers innovative solutions, including advanced biometric authentication with privacy safeguards, continuous authentication to prove user identity, and modern MFA for enhanced security. By combining these strategies, organizations can significantly reduce the risk of ATO fraud and protect both their business and their customers. 

 if you have any questions regarding how to integrate our account takeover fraud solutions into your system. 

Account takeover prevention

Preventing Account Takeover Fraud

In a comprehensive assessment by Liminal, the Market Intelligence Firm, Keyless has been acknowledged as a leading innovator in the customer authentication sector. The 2024 Link™ Index for Customer Authentication shines a spotlight on Keyless among the top 15 vendors in a field that includes more than 50 companies across various industries.

The report begins by reflecting the ongoing market shift. Customer authentication technologies are pivoting away from traditional, knowledge-based methods like passwords towards more advanced, user-friendly solutions. The most popular solutions are both flexible and scalable, and can blend seamlessly into existing security stacks and broader digital platforms.

The Liminal report notes that nearly 90% of surveyed businesses are interested in moving away from password-based authentication. Despite the enthusiasm, the transition is tempered by technical and educational barriers, with only a third likely to adopt these systems in the near future.

Keyless’ solution segments highlighted in the Link Index Report.

Liminal notes that Keyless sets itself apart with its privacy-preserving biometric authentication solutions. The Link™ report explains how our flagship technology does not store biometric data, either locally or in the cloud, using advanced cryptography to authenticate user identities securely. This method not only enhances user privacy but helps businesses comply with stringent global regulations.

In the report, our Consumer Authentication solution is praised for its flexible multi-factor authentication (MFA) options and seamless Single Sign-On (SSO) integration, supported by strong API access. This flexibility allows for a highly adaptable authentication environment that easily integrates with existing business systems and Identity Verification (IDV) partners, facilitating efficient step-up authentication processes.

Our customers have expressed high satisfaction with the compatibility of Keyless’ platform across various device types, praising the intuitive nature of our dashboard and reporting mechanisms, and our ability to prevent ATOs. They appreciate how the authentication process mirrors the simplicity and speed of using Face ID on smartphones, with each authentication flow completed in about 300 milliseconds.

A typical passwordless login flow with Keyless

The adoption of customer authentication solutions like those provided by Keyless has led to significant operational benefits. These include a 

 in account recoveries using call centers and a 

 in related labor expenses. Moreover, businesses have noted a 

 in successful phishing attacks, thereby boosting the lifetime value of each customer and enhancing overall security.

Despite being a relatively newer player with a small team when compared to other Leaders such as Google, Okta, and Twilio, Keyless has established a strong market presence, particularly in Europe. The report notes that our strategic partnerships and focus on product development have facilitated steady growth and near-term plans include the continuing expansion of our market presence to North America, aiming to become a globally recognized name in customer authentication.

Keyless continues to lead the charge towards a safer, more private world. Our unique, privacy-preserving approach to biometrics are setting benchmarks in the industry and prove that advanced security and a better user experience can go hand in hand.

Report Summary: Keyless Shines in Liminal’s 2024 Market Overview on Customer Authentication

Keyless has been highlighted among the top ATO prevention vendors in the 

2024 Market and Buyer's Guide for Account Takeover Prevention in Banking

, authored by Digital Identity Strategy Firm Liminal. This report recognizes Keyless alongside industry leaders like Akamai Technologies, Feedzai, Fortinet, IBM, LexisNexis Risk Solutions, and Palo Alto Networks, each playing a pivotal role in fortifying the banking sector against the rising tide of account takeover incidents.

Phishing is the most significant ATO threat vector

, accounting for 26.7% of all account takeovers and standing as the most common method attackers use to access user accounts.

External Vendor Reliance: Despite the potential for in-house development, banks continue to prefer outsourcing ATO prevention solutions. 

Only 20% of fraud teams have plans to develop solutions internally

, with half not expecting to undertake these developments for at least two years.

: Out of a wide range of authentication methods surveyed, including app-based authentication, data breach monitoring, SMS OTPs, Behavioral Biometrics, Risk Scoring, and Bot Detection, an overwhelming 

88% of survey participants strongly prefer biometric authentication

, marking it as a critical capability for combating account takeovers.

Market Analysis, Vendor Profiles, and Emerging Trends

Liminal's 2024 guide offers an in-depth analysis of current market dynamics in account takeover prevention, featuring detailed profiles of leading vendors including their strategic approaches to mitigating ATO risks. The report highlights the complexities of phishing attacks, mobile security vulnerabilities, and the regulatory landscapes affecting global markets. Additionally, it identifies emerging trends in the cybersecurity landscape, stressing the escalation of cyberattacks and the critical need for advanced digital defenses. The guide emphasizes the importance of adopting sophisticated security measures like continuous authentication and biometrics to combat these evolving threats effectively.

Highlighting Advanced Security Innovations

Liminal's 2024 guide on Account Takeover Prevention in Banking accentuates the critical role of innovative technologies in safeguarding against unauthorized access. Keyless distinguishes itself by implementing several advanced methods:

As the digital banking ecosystem continues to expand and evolve, so too does the landscape of security threats. 

Liminal’s 2024 Market and Buyer's Guide

 not only charts the current state of account takeover prevention but also projects future developments in the field. It is an indispensable resource for those committed to staying ahead of potential security threats in an increasingly digital world.

We encourage banking professionals and cybersecurity experts to read the full report to better understand how Keyless, together with other leaders in the field, are innovating and shaping the future of banking security.

Keyless Featured in Liminal Research Report on ATO Prevention in Banking

We are thrilled to announce that Keyless has been highlighted as a Luminary in decentralized biometric solutions in the 

2024 Biometric Digital Identity Financial Services Prism Report

, published by Acuity Market Intelligence under The Prism Project. This recognition underscores our growing role in advancing the field of biometric authentication within the financial services sector.

The Decentralized Model and ZKB Technology

Keyless is celebrated for its pioneering privacy-preserving technology within the financial services industry. Part of the emerging decentralized authentication category of biometrics (

 (ZKB) technology is at the core of our solutions, ensuring that no biometric data is stored anywhere - neither on the device or in the cloud - a unique achievement. This approach not only enhances user privacy but also ensures compliance with stringent regulations such as GDPR and PSD2.

Our approach to the decentralized model involves using a groundbreaking technique known as 

 (sMPC) which combines the benefits of the two existing methods - local and centralized biometrics. This method processes biometric data on the device, similar to local biometrics, but then transforms and stores it in the cloud, not as biometric data but in a format that doesn’t legally constitute ‘biometric’ data. This ensures that neither Keyless nor any cloud provider can access or decrypt the actual biometric data, combining privacy with cloud scalability and accessibility.

Case Study: Transforming Financial Services

The report highlights a case study in which Keyless has helped a national bank managing billions in assets and serving hundreds of thousands of customers address the inefficiencies and security risks associated with traditional SMS OTPs and customer support.

By implementing our biometric technology, the bank was able to significantly reduce its dependency on call center support through self-service biometric account recovery features, allowing users to independently recover their accounts with just a glance. Additionally, the improved user experience led to minimized disruptions and heightened transaction success rates, ultimately boosting customer satisfaction.

For high-risk transactions, the bank employed step-up authentication using facial biometrics, which not only eliminated the reliance on SMS OTPs but also significantly enhanced security. This shift resulted in a substantial decrease in annual password and account management costs, heightened protection against phishing and SIM swapping attacks, and notably, a decrease in account takeover fraud. 

Following on from our feature in their inaugural 

, Acuity Market Intelligence’s acknowledgement in their latest Prism Project report highlights our commitment to privacy-centered biometrics that do not compromise on the user experience. We are always striving to push the boundaries of industry, driving forward the implementation of the most innovative technologies for the financial services sector.

Keyless Recognized as Luminary in 2024 Prism Project Report on Biometric Digital Identity for Financial Services

 hosted by Darius Montvila, Sales Director North America and Paolo Gasti, Associate Professor at NYIT and our CTO, explored the growing challenge of deepfakes and their implications for identity verification in the digital age. The session delved into the evolution of deepfakes, the threats they pose, and innovative solutions to counter these threats.

The AI Evolution and the Beginnings of Deepfakes

The webinar kicked off with a historical overview of AI and deepfakes. Darius highlighted that the exploration of AI for image manipulation dates back to the 1990s, with a significant milestone in 2014 when Ian Goodfellow introduced Generative Adversarial Networks (GANs). Paolo provided insights into how GANs work, explaining that they involve two neural networks – a generator and a discriminator – that work in tandem to create increasingly realistic images.

In 2017, the term "deepfake" was coined on a subreddit dedicated to videos using face-swapping technology. Today, deepfakes have evolved from crude manipulations to hyper-realistic content, raising concerns about extortion, blackmail, misinformation, and political subversion. The dual-edged nature of deepfakes was emphasized, with their potential for both creative and malicious applications.

Darius discussed several high-profile deepfake incidents, including a fake Biden robocall urging New Hampshire Democrats to stay home, a Hong Kong company worker losing £20 million in a deepfake video call scam, and the CEO of WPP, the world's largest advertising firm, being targeted. These examples underscore the growing sophistication of deepfake attacks and their potential impact.

The webinar then shifted to the specific threats deepfakes pose to identity verification. Paolo explained presentation attacks and injection attacks, where fake images or videos are used to spoof identity verification processes. One notable example mentioned was using a deepfake of Elon Musk to bypass security checks.

Liveness detection emerged as a critical defense against deepfakes. Paolo differentiated between traditional detection methods and the more advanced passive liveness detection used by Keyless. Passive liveness detection identifies subtle indicators such as skin color variations, textural patterns, light reflections, and unique traits in the periocular region. These indicators help distinguish between live individuals and static images or videos.

Keyless employs a multi-layered defense strategy against deepfake threats, as recommended by Gartner. Darius emphasized Keyless' commitment to privacy-preserving, multi-factor authentication, leveraging passive liveness detection. This approach ensures robust authentication while maintaining user privacy.

The aim of the Deepfake Dilemma webinar was to provide valuable insights into the origins, risks, and countermeasures associated with deepfakes. If you didn't get a chance to watch the webinar live, you can access the webinar recording 

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