What does SCA aim to enhance in financial transactions?

• A. Transaction speed
• B. User convenience
• C. Security and fraud prevention
• D. Cost efficiency

Answer: (C)

The Secure Customer Authentication (SCA) aims to enhance security and fraud prevention in financial transactions. SCA is a regulatory requirement designed to reduce the risk of fraud and enhance the security of online payments, particularly in the European Union under the Revised Payment Services Directive (PSD2). By enforcing strong customer authentication, which often requires multiple factors for verification—such as something the customer knows (a password), something the customer has (a phone or card), and something the customer is (biometric data)—SCA significantly strengthens the protection of sensitive financial information during transactions.

This focus on security helps build trust between customers and service providers, encouraging more users to engage in online transactions while reducing the likelihood of fraud, which is a paramount concern in the digital economy. Enhancing security and preventing fraud create a more secure environment for users, thereby reinforcing the integrity of the financial system.