A report by the FIDO Alliance revealed that 53% of consumers observed an increase in suspicious messages in 2024, with SMS, emails, and phone calls being the primary vectors.

As digital scams and AI-driven fraud rise, businesses face growing pressure to strengthen authentication methods without compromising user experience.

No clear standard has emerged despite the range of available authentication options-including passkeys, one-time passwords (OTP), multi-factor authentication (MFA), and biometric systems.

Industry experts warn that focusing solely on advanced tools can lead to overlooking basic user needs. Minor authentication hurdles such as CAPTCHA errors have led to customer drop-offs and failed transactions.

Organisations are exploring risk-based, adaptive authentication models that adjust security levels based on user behaviour and context. The systems could eventually replace static logins with continuous, behind-the-scenes verification.

AI complicates the landscape further. As autonomous assistants handle tasks like booking tickets or making purchases, distinguishing legitimate user activity from malicious bots becomes increasingly tricky.

With no universal solution, experts say businesses must offer a flexible range of secure options tailored to user preferences. The challenge remains to find the right balance between security and usability in an evolving threat environment.