Authentication services are poised for greater traction as online financial activities proliferate. Businesses remain susceptible to fraudulent transactions, and customers will require better identity protection for online activities, triggering growth in the world phone based out-of-band authentication products market.
New analysis from Frost & Sullivan (networksecurity.frost.com), World Phone Based Out-of-band Authentication Products Market, finds that market earned revenues of over $40 million in 2008 and estimates this to reach $137 million in 2015. The study covers knowledge-based questions, tokens, smart cards, biometric readers, and phone authentication product solutions.
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"Online shopping and e-banking increase the probability of user information being compromised," says Frost & Sullivan Research Analyst Martha Vazquez. "Passwords are weak defenses against hackers and cyber criminals and as regulations become more stringent, enterprises will resort to the use of phone-based out-of-band authentication security as a means of offering users additional security."
Organizations remain under pressure by local, state, and federal agencies to protect consumer and financial information. Data breaches cost organizations both a fine for non-compliance with regulations, ruining brand reputation. The infamous 2006 data breach ofTJX Companies was caused by weak security measures and lack of policy regulation, leading to the theft of at least 45 million credit and debit cards and related information. Of the reported cases in 2008, the data breach at Princeton, N.J., may have compromised tens of millions of credit and debit card transactions, while the one at Hannaford Brothers Co. compromised at least 4.2 million credit and debit card accounts.
Enterprises commonly choose other methods of authentication, such as user names and passwords, believing they are adequate for securing applications. Vendors must devote greater attention to building awareness of phone-based out-of-band authentication services, and showcase benefits including ease-of-use and cost effectiveness. This will definitely serve to boost long-term sales prospects.
"Vendors that only offer phone authentication need to look at expanding services that are geared toward advanced user authentication, such as voice biometrics," says Vazquez. "Providing multiple authentication services will enable businesses to see the true value of the service."
The demand for more integrated solutions makes consolidation inevitable in this market. Stand-alone solutions will be difficult to market, so vendors must be amenable to consolidation with companies that extend complementary solutions. Companies continue to develop integrated solutions facilitated by mergers or acquisitions. Additional partnerships and channel relationships must be pursued to achieve global penetration and enhanced security portfolios.
Participants can also widen their customer base by looking beyond enterprise clientele and offering services directly to consumers. The ever-expanding base of remote workers using laptops and mobile devices will provide vendors with a realistic proposition for business expansion.
World Phone Based Out-of-band Authentication Products Market is part of the Network Security Growth Partnership Service program, which also includes research in the following markets: World Content Filtering Products Market, World Firewall Management Solutions Markets, World Vulnerability Research Market, and North America Managed Security Service Providers Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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