What is risk-based authentication (RBA)?

Risk-based authentication (RBA) is a security approach that evaluates the risk level of a transaction or access attempt before determining the appropriate authentication method. The primary goal of RBA is to enhance security by applying different levels of verification based on the context and potential risk involved with a transaction.

In practical terms, RBA assesses various factors such as the user's location, device being used, transaction amount, and the user's transaction history to estimate the risk. If the system identifies a transaction as high-risk, it may prompt for additional verification steps, such as two-factor authentication or biometric verification. Conversely, low-risk transactions may not require stringent verification measures, allowing for a smoother user experience without compromising security.

This dynamic approach to authentication helps organizations mitigate risks associated with fraud, identity theft, and unauthorized access while maintaining user convenience based on the perceived threat level of each transaction.