How will Strong Customer Authentication (SCA) impact fraud prevention strategies?

<a href="/glossarycollection/strong-customer-authentication" style="color:#48277C;" target="_blank" title="Strong Customer Authentication">SCA</a> should create a significant fall in fraud rates as it requires stronger controls around transaction authentication and many transactions that might previously not have been authenticated will now be forced into authentication by the Second Payment Services Directive (<a href="/glossarycollection/the-second-payment-services-directive" style="color:#48277C;" target="_blank" title="The Second Payment Services Directive">PSD2</a>). 

Although SCA exemptions are available, they are limited and financial institutions need to maintain low fraud rates to benefit from them and reduce friction in their customer journeys.