Regulations That Need Changing: Two-Factor Authentication Should Be Mandatory For All Transactions

To a wealth management company, it may seem like you will be regulated out of business. With so many regulations already in effect, I’m sure that the last thing you want is one more to deal with, but this one is extremely important for your business and your clients. Every transaction request needs to be verified with two-factor authentication.

Now more than ever, scammers are targeting wealth management companies. These scammers are posing as existing customers and requesting transactions. With only knowledge-based verification in place, fraudulent actors are able to assume the identity of the client and steal assets.

Two-factor authentication can help to keep this from happening. Performing the normal knowledge-based verification is like the first wall in a fortress—it’s good, but not good enough. A second factor needs to be added. A great second factor is a text-based verification where you text a client’s known number. If the client is in possession of their mobile phone, they can provide the second factor.

If the client is able to pass the knowledge-based and text-based verifications then it is much more likely that that person is the actual client he or she claims to be.

At DTS Verify we have built a system that works with popular CRMs like Redtail and SalesForce to secure and simplify the verification process. DTS Verify connects to your CRM and allows you to quickly send a text message with a secure code to your client.

Why wait until you are regulated to add a second factor to your current process? Without a second factor in place, you are risking falling for a scam. Far too many people have found out that knowledge-based authentifications just aren’t good enough. Sign up for a trial of DTS Verify today to start protecting your business and your clients.