Recently Dark Reading published this article.
"Gartner's Litan says the fallout from the new Flash privacy features is another example of how privacy and fraud protection often clash. "A lot of rules protecting consumer privacy are bad for fraud protection," says Litan, who recently wrote a research note regarding the conflict between privacy and fraud detection."
It is interesting in that it highlights that many of the solutions that banking and other verticals have implemented uses a flash "fingerprint" to evaluate whether the person visiting the site is really who they say they are. This in industry language is a risk based authentication. The author of the Dark Reading article implies that these risk based systems will no longer be effective. What is missing here is that these systems use the fingerprint as one piece of information in their evaluation of the site visitor.
It has not bee publicized how Adobe will roll out new privacy measures for flash and therefore none of these authentication vendors can really respond to this speculation. Ultimately the flash informaiton will likely still be available for evaluation by the authentication mechanism but the authentcation system will not be able to place a flash object on the visitors computer for later evaluation. This still informs the system and allows it to make its risk based assessment.
The article rightly states that users may get challenged if suddenly they delete all of their flash objects but site can also adjust its view of the users and as always educate them on why they are placing the flash object there.