Enhancing Financial Transaction Security Using OAuth2, MFA, and Azure AD Authentication: A Java-Based Integrated Approach
DOI:
https://doi.org/10.22399/ijcesen.2068Keywords:
OAuth2, Multi-Factor Authentication, Azure Active Directory, Financial Security, Access Tokens, Authentication LatencyAbstract
In recent years, financial transactions have been increasingly targeted by cyberattacks, fraud transactions and identity theft. Traditional authentication mechanisms such as basic auth have proven to be insufficient. This paper proposes a multi-layered security framework which integrates three components- Oauth2 token-based authentication, multi-factor authentication (MFA) and Azure Active Directory (AAD) to secure real-time financial transactions. This approach aims to maintain seamless transaction processing along with reducing token compromise rates and prevent unauthorized access. This research paper presents a quantitative approach to evaluate the impact of integrating transaction security, authentication latency and overall performance. A java-based implementation using Springboot and Spring-security has been developed to empirically evaluate the effectiveness of the approach. Using a sample size of 10,000 financial transactions, the integrated Oauth2+MFA+Azure AD approach reduced the token compromise rates from 2.7% to mere 0.4%, which is offset by a latency increase of only 260ms. These findings demonstrate that integrated authentication substantially enhances security at the same time maintains acceptable performance, thus offers a robust foundation for high-throughput and large-scale financial applications. This research lays groundwork for future enhancements into adaptive MFA policies and machine learning based anomaly detection for real-time financial transactions.
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