Transaction authenticity can be defined as the authentication of a party’s identity to ensure that pending transactions and contractual agreements are legal and enforceable. In today’s economy, there is a heavy reliance on, and need for, online transactions by organizations. With businesses and consumers routinely transmitting sensitive and confidential messages over public networks, the importance of validating, verifying and authenticating a party’s identity and information when performing electronic transactions is crucial.
This tool explains the meaning of transaction authority risk and transaction authenticity, outlines business risks related to transaction authority, and shares management practices and questions to consider.