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Over 150 Biometric and 2FA Products Certified to Meet FIDO’s Interoperability Standard

Published on April 11, 2016, by in Fraud Prevention, Industry News.

In early April, the Fast Identity Online (FIDO) Alliance announced that they have now certified over 150 two-factor authentication and biometric products for replacing static passwords, an increase of 50 percent just in the last quarter. These products meet the group’s specifications under their published Universal Authentication Framework, with several major mobile handset manufacturers and service providers offering FIDO Certified authentication. This does not include Apple and their TouchID fingerprint scanning technology, however.

The FIDO Alliance formed in 2012 and released their standards for stronger authentication at the end of 2014. Focused on proliferating the use of stronger authentication that meets the Alliance’s standard for security and interoperability, members are working on making FIDO Certified forms of authentication available to hundreds of millions of end users, whether coming through traditional eCommerce or mCommerce channels.

 

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Millennials Are Group Most Likely to be Victims of Both Telephone and Online Scams

Published on April 11, 2016, by in Industry News.

Multiple studies have recently shown that across all age groups it is Millennials who are most likely to fall victim to scams carried out via telephone or SMS, as well as fall prey online while displaying careless habits. These digital natives are the most comfortable with mobile devices and eCommerce, but also the most trusting and vulnerable.

Many assume that Millennials are cautious with technology since growing up with it, but there is data from multiple studies showing this is not exactly the case.

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The Impact of Fraud Beyond Direct Financial Losses

Published on April 11, 2016, by in Fraud Prevention, Industry News.

Because eCommerce fraud is already painful with the reversal of funds, chargeback fees and lost product, the indirect costs are often ignored or are just an afterthought. Recent studies show the lasting impact payment fraud has on consumers, merchants and issuers, indicating that the cost of fraud continues beyond the initial loss. Increasing fraud has also influenced organizations’ budgets, with chargeback and risk management costs representing as much as twenty percent of a merchant’s operational expenditure, according to Javelin Strategy and Research.

Polling consumers in early 2016, a recent study found that consumers have lasting reactions after experiencing fraudulent charges on their credit or debit cards that can impact either or both the card issuing bank and merchant involved.

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Press Release: The Fraud Practice and CardinalCommerce Release the 3rd Annual Consumer Authentication Survey Report After Presenting Key Survey Results at MRC Vegas

Published on March 15, 2016, by in Fraud Prevention, In The Press, Industry News.

Sarasota, FL, March 15, 2016 / The Fraud Practice, Inc.

The Fraud Practice and CardinalCommerce have released the third annual Use of Consumer Authentication in eCommerce white paper, detailing the results of the 2016 Consumer Authentication Survey. Tara Lavelle, VP of Marketing at CardinalCommerce, and Justin McDonald, Sr. Risk Management Consultant with The Fraud Practice, discussed the key findings and highlights from this year’s survey at the MRC Vegas 2016 conference. Previously only made available to those who participated in the survey, this annual report is now available for all to download.

This annual report discusses key findings from the 2016 Consumer Authentication Survey along with longitudinal trends and analysis, including perspectives from all kinds of payment industry players as well as merchants who both use and do not use these services today. Now in its third year, the 2016 Consumer Authentication Survey uncovered several new trends and findings while showing continued improvements in happiness and sophistication of how merchants implement Consumer Authentication, as well as reinforcing the validity of previously seen trends when comparing results year-to-year. These and many more findings are detailed in the full report.

Download your free copy of the white paper

Read the Full Press Release

 
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EMVCo’s 3DS 2.0 Specification Coming at a Critical Time

Published on March 14, 2016, by in Industry News.

Merchant and cardholder use of Consumer Authentication programs like Verified by Visa and MasterCard SecureCode increased following the rollout of EMV in multiple countries and regions, but whether or not this happens in the U.S. may be contingent on the evolution of these programs and the impending 3DS 2.0 Specification. The enhanced specification, expected to be released sometime this year, seeks to reduce friction and eliminate the early adoption issues that affected 3DS 1.0 by making use of richer data and a risk-based approach to reduce the need for authentication prompts, while utilizing more streamlined and dynamic forms of authentication when it is required.

EMVCo, the joint venture overseen by the six major card associations American Express, Discover, JCB, MasterCard, UnionPay and Visa, immediately began working with industry stakeholders and collecting industry feedback to develop the new protocol with plans to have the EMV 3DS 2.0 Specification ready for deployment in 2016. The new specification operated by EMVCo will function separately and in parallel with version 1.0, which Visa will maintain sole ownership of but begin to phase out as 3DS 2.0 matures.

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MasterCard to Launch Identity Check App in 14 Countries this Summer, Bringing Biometrics to More Card Absent Transactions

Published on March 2, 2016, by in Fraud Prevention, Industry News.

MasterCard showcased their new Identity Check product at the Mobile World Congress in late February, announcing that after successful trials they will be rolling it out this summer in North America and across much of Europe. Identity Check is an application consumers will be able to download onto their mobile devices, tablets and PCs that will facilitate biometric verification to validate eCommerce and mCommerce transactions. It supports fingerprint reading and/or facial recognition depending on the end user’s device, although most of the publicity has been around the ‘selfie’ authentication feature.

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Amazon Acquires Indian eCommerce Payment Platform Emvantage

Published on March 2, 2016, by in Merger & Acquisitions.

Amazon announced in February they would be acquiring Emvantage, an online payment gateway that processes alternative and card-based payments in India, for an undisclosed sum. The privately held startup offers a platform and technology that Amazon will leverage to develop and build out their Indian eCommerce site and payment platform.

The acquisition of Emvantage benefits Amazon by providing local payment methods and expertise in a market that has lower credit and debit card penetration and more preference towards cash-funded and alternative payment methods.

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Apple Pay Adoption Moved Slow, but 2015 a Big Year for Mobile Payments Overall

Published on January 26, 2016, by in Industry News, Payments.

Apple CEO Tim Cook may not have had the year he was hoping for after saying that 2015 would be the year of Apple Pay, but it was a strong year for mobile contactless payments overall marked by increases in adoption and mobile payment volume, several more players entering the arena and multiple partnerships, acquisitions and commercial developments to foster the future of mobile payments. While it’s estimated that only 16.6 percent of U.S. consumers with a compatible iPhone have tried Apple Pay and this payment method is used in just 5.1 percent of transactions where it is supported by both parties, it was a catalyst for mobile contactless payments which doubled in volume for 2015 and are expected to triple in 2016.

According to eMarketer there were over 23 million proximity mobile payment users in 2015 that spent $8.71 billion, more than doubling from $3.7 billion spent via contactless POS mobile payment methods in 2014.

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Fraud Attempts Increased this Holiday Season for Digital Download, In-Store Pickup and Overall

Published on January 26, 2016, by in Fraud Prevention, Industry News.

Benchmark data of top global retailers from ACI Worldwide along with data tracked by the eBay Enterprise Holiday Fraud Index show apparent strategies and key dates where types of fraud attacks spiked during the holiday season, while overall fraud attempts between Thanksgiving and New Year’s Eve increased by 8 percent compared to 2014.

Merchants with any experience selling goods or services online are aware that eCommerce fraud tends to increase during the holiday season when overall transaction volume is higher as well. Data from eBay and ACI Worldwide show high fraud attempt rates on dates such as Thanksgiving, Christmas Eve and New Year’s Eve.

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