What is Strong Customer Authentication (SCA)?

What is Strong Customer Authentication (SCA)?

• A. A single-factor authentication
• B. A marketing requirement
• C. A crime-prevention measure not used online
• D. Requirement to decrease online fraud for businesses who have customers in Europe

Answer: (D)

Strong Customer Authentication is a European regulation that tightens online payments by requiring at least two independent verification methods during payment authorization. This is part of PSD2 and applies to customers in the European Economic Area. The goal is to reduce online fraud by confirming the payer through multiple factors—something they know (like a password), something they have (a mobile device or card), or something they are (biometrics). Because of this, payments for businesses with customers in Europe must commonly go through SCA, unlike single-factor authentication, marketing requirements, or non-online crime-prevention measures. This is why the statement describing it as a requirement to decrease online fraud for businesses with European customers best fits.

Strong Customer Authentication is a European regulation that tightens online payments by requiring at least two independent verification methods during payment authorization. This is part of PSD2 and applies to customers in the European Economic Area. The goal is to reduce online fraud by confirming the payer through multiple factors—something they know (like a password), something they have (a mobile device or card), or something they are (biometrics). Because of this, payments for businesses with customers in Europe must commonly go through SCA, unlike single-factor authentication, marketing requirements, or non-online crime-prevention measures. This is why the statement describing it as a requirement to decrease online fraud for businesses with European customers best fits.