This shift to identity-based security has had major implications for compliance. Frameworks like FedRAMP, CMMC, and NIST 800-series controls all rely on strong identity practices. Yet areas like Identity Assurance remain a consistent challenge.
Many organizations assume that if a user can log in with MFA, their identity is secure. In reality, authentication only proves that someone possesses a credential. Identity assurance determines whether the system actually knows who that person is.
In the financial industry, fraud is a natural and ever-present challenge. Digital banking and international finance have only compounded this problem, and anti-money laundering and fraud laws in the U.S. have evolved to address these issues.
In modern times, the overlap of identity management, authentication, and identity assurance has led to more comprehensive forms of authentication. These verification forms can differ based on the customers, the jurisdiction or industry, or even the technology used to make a payment or secure funds. But, all forms of authentication are purpose-built to ensure that technological systems can resist unauthorized access to financial information.