In traditional brick-and-mortar settings, interactions often take place face-to-face at a counter with a sales representative. However, in the current landscape, these interactions typically begin with digital access, whether through cloud computing, mobile applications, or eCommerce platforms. This highlights the critical role of digital channels in shaping customer experiences and driving business success.

In today’s digital age, websites and mobile applications serve as primary gateways for consumers to engage in business and social activities. To safeguard against fraudulent activities such as account hijacking, it’s crucial to ensure the security of these access points. However, it’s equally important to maintain user-friendliness and not create unnecessary hurdles that could hinder user adoption. To achieve these objectives, businesses are increasingly adopting Customer Identity and Access Management (CIAM) solutions, which provide a comprehensive and effective approach to managing user identities and access rights while delivering a seamless user experience.

Security and user experience must be balanced.

As we move into 2023, the age-old challenge of transforming security from a hindrance into an asset for businesses still persists. To enable digitized businesses to function smoothly, it has become crucial to address the issues related to user experience, privacy, and security in managing customer identities. From implementing single sign-on to multifactor authentication, finding solutions to these challenges has become a top priority.

In the realm of managing customer identities, there has been a historical division between those prioritizing user experience and those emphasizing secure login. These two camps have often been at odds with each other, as implementing security measures can introduce friction, which may negatively impact the customer experience. This creates a push-pull situation where the sales teams and other stakeholders may be tempted to compromise security for the sake of convenience. Balancing security and user experience remains a challenge in this context.

To strike a new balance between security and user experience in managing customer identities, security teams must collaborate with stakeholders outside of those typically involved in employee Identity and Access Management (IAM), such as marketing and customer support teams, rather than just Human Resources. As a result, the nature of conversations surrounding the project will also differ. Instead of delving into job roles and segregation of duties, the focus will likely be on accommodating various device types to simplify the authentication process. The ultimate objective is to create a seamless and uncomplicated authentication experience for customers.

Understanding the Type of MFA that is Right for You.

Discussions surrounding the balance between security and user experience in managing customer identities often centre around Multi-Factor Authentication (MFA). While passwords remain widespread, there is increasing recognition that additional layers of security are necessary. This prompts the question of what type of MFA an organization should adopt. A sound MFA approach typically involves a combination of something you know, such as a password, and something you have, such as a fingerprint or a secure challenge sent to a mobile device. These factors should belong to different categories to enhance security.

While it may be tempting to use email or SMS as a second factor in MFA due to its ease of use and setup, these methods may not be the most secure option. SMS is susceptible to SIM hijacking attacks and SMS fatigue, while email accounts are at risk of attacks, as well as message routing can be intercepted. In fact, the National Institute of Standards and Technology (NIST) does not recommend either method as an effective MFA approach and suggests moving away from them. It is essential to identify an MFA technique that does not require the presence of an IT consultant on the customer’s device to set it up.

Organizations are forced to search for two-factor strategies that strengthen security posture without compromising a seamless user experience because of the conflict between usability and security. One solution is biometrics. However, many businesses make use of the device’s built-in features, such as the ability to take a user’s fingerprint and use it to unlock the required credentials. Another strategy is to implement end-to-end processes that rely on user validation up front. In this case, the user makes use of MFA throughout the registration process, resulting in MFA being used for the user’s initial verification. By adding an additional layer of identity verification, this tactic helps to supplement the usage of MFA when a user connects into a service.

Identity is also confirmed using the features of the device. These abilities, however, frequently need to be developed more. Simple capabilities can create errors, such as mistaking a device as new just because it recently got a web browser update. Unnecessarily, there has been an increase in friction. Such circumstances include when a device has an unrecognised IP address due to using a different IP address.

Customer experience should be aligned with the CIAM program.

To successfully implement Customer Identity and Access Management (CIAM), organizations should prioritize adopting a strategy that effectively balances security measures with user engagement. This is important because the CIAM program must align with the organization’s customer experience objectives in order to be successful. Therefore, a thoughtful and holistic approach is necessary to ensure that both the security of customer data and the ease of use for customers are considered.

In addition to frictionless experiences, Okta Customer Identity provides centralized management, cloud-based security, and developer-friendly design with minimal customization. Okta provides CIAM-managed services to help organizations achieve their CIAM goals.

Conclusion

While identity management discussions typically centres around employees, it is equally important for businesses to safeguard their customers’ identities. Neglecting to do so can result in severe consequences. As we move forward into the upcoming year, enterprise leaders should prioritize providing a user experience that is both seamless and secure. This should be viewed as a New Year’s resolution, as it is vital to the success and longevity of the business. By prioritizing a comprehensive approach to identity management, organizations can better protect both their employees and their customers from potential harm.