What is a key component of Strong Customer Authentication (SCA)?

A key component of Strong Customer Authentication (SCA) is the use of biometric verification. SCA is designed to enhance the security of electronic payments and transactions by requiring two or more independent factors for authentication. Biometric verification employs unique physical characteristics, such as fingerprints or facial recognition, making it a robust method of verifying a user's identity.

This method adds a higher level of security compared to traditional knowledge-based authentication methods, such as passwords. Biometric verification is difficult to replicate, enhancing the overall security posture, and is increasingly accepted as a reliable method of authentication in various payment systems.

In contrast, while other options may contribute to security practices, they do not encompass the multifactor element required by SCA in the same way. For instance, regular password changes can help mitigate risks associated with compromised credentials but do not provide the two-factor approach that SCA mandates. Account activity monitoring is beneficial for detecting fraudulent behavior but does not serve as a measure for authenticating access during a transaction. Two-factor authentication via SMS is a recognized method but relies on a single knowledge factor (the SMS code), thus not fully aligning with the multifactor requirements of SCA, particularly in cases where SMS could be intercepted.