Enhancing Digital Wallet Security: A Systematic Comparison of Passwordless and Risk-Based Authentication Approaches

This chapter delves into the critical role of secure authentication in the digital era, particularly for digital wallets. It explores the evolution of authentication methods, from traditional password-based systems to advanced passwordless and risk-based approaches. The study compares various authentication techniques, including time-based, certificate-based, magic links, behavioral biometrics, adaptive, continuous, and passwordless authentication, evaluating their security, usability, and implementation challenges. The analysis highlights the vulnerabilities of traditional password systems, such as phishing, brute force attacks, and data breaches, and underscores the need for more robust solutions. The chapter also discusses the principles of digital identity and the importance of selecting appropriate authentication strategies that balance security, user experience, and regulatory compliance. The conclusion advocates for the adoption of passwordless and risk-based authentication methods, which offer enhanced security and adaptability in response to evolving cyber threats. Professionals will gain insights into the latest authentication technologies and their practical applications, as well as the future directions of digital security.