Refinitiv Acquires GIACT to Build Holistic Fraud, Identity, AML and Cybercrime Solution

Bank account authentication, funds confirmation and KYC provider GIACT will be acquired by Refinitiv, a financial technology and data vendor owned by London Stock Exchange Group. GIACT’s data and technology will complement Refinitiv’s due diligence, risk and compliance services while broadening the company’s digital fraud prevention and identity services.

The acquisition of GIACT both strengthens Refinitiv’s existing service offerings with stronger US data assets and broadens their service offerings and capabilities to additional industries.

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How WireCash Manages Fraud and Found Success Underwriting Digital Money Transfers to High Risk Markets

How well would your fraud management program perform if your organization depended on it for doing business with customers from countries like Ukraine and Nigeria? Now what if we said your business was facilitating money remittances to these countries? WireCash is doing just that, and we sought to uncover how this could be possible by talking directly with the company that found success at the intersection of one of the highest risk industries and some of the highest risk countries in terms of online fraud.

The use of custom modeling and risk analytics also allows WireCash to be more consumer-friendly than they were in their ATMCash days, and compared to most online MSBs. While WireCash may sometimes require strong authentication or verification techniques, they try to eliminate the need for this and reduce friction for most new customers through use of risk modeling and amassing many neutral or low risk signals. They have also leveraged this experience and insight to enter new markets where others wouldn’t go or would only tread lightly. WireCash today helps consumers send money to Nigeria, Ukraine, Russia, Armenia and other countries that present high risk. Money Service Businesses providing remittances to these countries have tended to offer limited services or maintain several day waiting periods.

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

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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Are the FIDO Alliance Authentication Specifications the Beginning of the End for Passwords?

The FIDO (Fast Identity Online) Alliance released their first documents for stronger authentication at the end of 2014 with version 1.0 of their Universal Authentication Framework (UAF) and Universal 2nd Factor (U2F) specifications. The group of more than 150 member organizations hopes to usher in the post-password era through biometrics, hardware and other forms of authentication, and is continuing to expand on their specifications to incorporate NFC and Bluetooth capabilities.

The FIDO Alliance formed in 2012 and has continued to grow as major financial institutions, payment, hardware, and technology organizations have joined. Board level members include Alibaba Group, Bank of America, Google, Microsoft, Visa, MasterCard and others. The Alliance’s first formal and published specifications outline a new standard for authentication offering “FIDO-enabled authenticators” that any organization, website or application can interface with. The intent is for the specifications to be an open standard rather than patent-restricted authentication processes or protocols as board level organizations Google and Nok Nok Labs each donated intellectual property. FIDO members can freely implement and market solutions around the FIDO-enabled authenticators while non-members can freely deploy these solutions as well.

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Identity Document Verification as a Lowest Common Denominator Risk Management Technique

The Fraud Practice discusses common issues merchants face with stale or unavailable identity data when attempting to authenticate and verify a user online and how identity document verification can be applied as a “lowest common denominator” technique in the latest feature article.

Too often organizations associate identity document verification with the banking and financial services industry, KYC and AML compliance, and other applications where it is used as a primary risk screening and verification technique. It is important to consider, however, that many other online merchants can benefit from using identity document verification as a secondary form of screening only when required. Because of its global applicability and ability to provide an indication of risk when identity data is otherwise not available for a consumer, identity document verification is something organizations can fall back on as a lowest common denominator fraud detection technique.

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Common Pitfalls When Performing Identity Document Verification as a Fraud Prevention Technique

It is common to find risk management teams relying on legacy identity document verification practices, which limits their ability to take advantage of the opportunity to leverage new technology and techniques to verify modern identity documents.  Making use of new identity document features and services can help protect the organization and improve customer retention and conversion.  To help organizations make the most out of using identity document verification The Fraud Practice has compiled a short list of the most common pitfalls merchants that perform identity document verification share.

In reviewing the common pitfalls it is important to keep in mind that in the past decade government issued identity documents (IDs) have evolved, but many systems and implementations for verifying IDs have not; unnecessarily leading to missed fraud and lost sales. Identity document verification can be an effective and often necessary risk management technique for many different types of organizations. Whether your organization manages a homegrown identity document verification solution,  uses a third party service or is currently evaluating options, the focus should be on maintaining good customers and an optimum user experience while detecting and mitigating identity fraud.

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Visa becomes third major card association to join FIDO Alliance

Visa follows Discover and MasterCard’s lead becoming the third card association to join the Fast Identity Online (FIDO) Alliance’s board of directors. The FIDO Alliance is focused on developing standards and technical specifications to make online authentication more secure.

The FIDO Alliance was formed in mid-2012 to address two primary issues with online authentication: the lack of interoperability standards across strong authentication devices, and the reliance on consumer created usernames and passwords, which are often weak and used across multiple platforms. Discover and MasterCard joined as board members towards the end of 2013, and Visa is the most recent board member to join announcing their participation in late May.

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Organized cybercriminals use web services to create false scanned documents

Less than $10 can purchase a scan of a false passport, driver’s license, or credit card with online delivery within seconds.

Cyber criminals take false identities to a new level through do-it-yourself websites selling scans of fake passports, ID cards, utility bills, and credit cards that fraudsters purchase and use to commit identity fraud.

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Measuring consumers’ patience with identity checks

A study performed on UK customers by Experian found that consumers on average will abandon transactions when identity checks take 7 minutes or longer to complete, although there is variation across verticals. This underscores the importance of organizations being able to present and perform these checks within an acceptable time frame or standard for their industry.

Identity checks might be in everyone’s best interest, but 45 percent of survey respondents backed out of at least one online transaction due to the length and complexity of the identity checks. Of this group, nearly half took their business to a competitor. Extended waiting times give consumers the opportunity to re-evaluate whether a purchase is necessary, and to look up products elsewhere to find a better price, or a quicker check-out process.

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