PSD2 - Strong Customer Authentication
What is Strong Customer Authentication (SCA)?
SCA acts as an additional layer of security for all N26 customers by providing Two-Factor Authentication (2FA). This is an authentication process based on the use of two or more secure elements. You’re probably familiar with using just your personal password to sign in to your account but with Two-Factor Authentication you’ll need either confirmation from a paired device or an SMS code.
When you log into your N26 account from the web app or a non-paired device, you’ll be asked to confirm a push notification on your paired device or you can request an SMS code to be sent to your registered number to confirm your login attempt. This ensures that only you can log into your N26 account.
When you log into your N26 account from your paired device, Two-Factor Authentication is already in motion. Therefore, the process of logging into your N26 account from your paired device stays the same.
Why is Two-Factor Authentication being introduced?
SCA is being introduced as part of the revised European Payments Services Directive (PSD2) which applies to all European Banks. The objective of PSD2 is to enhance the security of the customers’ data and account security.