Fraud Attacks, Losses and True Cost of Fraud All Increased in 2021

According to a recent study, eCommerce merchants in the US have experienced a 140 percent increase in fraud attacks relative to 2020, while every dollar associated with missed fraud costs organizations $3.60 on average, up 15 percent from before the pandemic.

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Five Tips for Increasing Speed and Performance with Manual Reviews

 Fraud and risk management strategies tend to focus so much on automated risk decisioning that improving manual review performance is often an afterthought. Consider the cost savings and increased revenue an organization could realize by cutting average order review times while also reducing sales insults and missed fraud on reviewed orders. This is why improving performance of manual reviews is at least equally important as efforts to reduce order review rates.

Here are 5 tips to increase speed and performance with manual review.

LexisNexis Makes Two Major Risk & Identity Acquisitions in First Two Months of 2020

LexisNexis prepares to fund two acquisitions totaling $855 million as parent company RELX looks to buy two major names in the identity authentication and risk management space. This includes the acquisition of ID Analytics from NortonLifeLock in January followed by the purchase of email authentication vendor Emailage, announced in mid-February. Both deals are expected to close in the first quarter of this year.

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Secure Consumer Authentication (SCA) Required for Intra-European eCommerce Beginning September

To maintain compliance with the European Union’s Second Payment Services Directive (PSD2), merchants in Europe will have to perform Secure Consumer Authentication on most non-recurring transactions greater than €30 within the European Economic Area (EAA) starting September 14th. Secure Consumer Authentication, or SCA, refers to consumer authentication services with two factor authentication facilitated by a dynamic code or biometric verification.

These new regulations coming into effect on September 14th will increase the use of consumer authentication programs as 3D Secure 2.0 will be the primary authentication method for meeting these requirements. SCA requires two-factor authentication and banks will decline transactions that don’t complete this authentication.

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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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Mitek Systems Acquires IDchecker for $10.6 Million

Mitek, who specializes in mobile onboarding and capturing solutions, announced they would be acquiring identity document verification provider IDchecker for $10.6 million. Mitek owns several patents related to mobile imaging technology used for mobile deposits and other applications for financial institutions but will now incorporate photo verification of identity and other documents following the acquisition of IDchecker.

While Mitek already had 21 patents issued, the acquisition of IDchecker will bring more. The patented algorithms and techniques behind IDchecker’s FACELINK facial recognition technology will complement the suite of services Mitek already provides to 3,700 financial institutions utilizing their Mobile Deposit services. In addition to the auto capture patent and facial recognition technology IDchecker brings, the acquisition makes Mitek’s ID verification capabilities and global presence more robust as their global ID document coverage expands to over 3,500 document types worldwide.

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The Fraud Practice and CardinalCommerce Release Results from the 2nd Annual Consumer Authentication Survey

The Use of Consumer Authentication in eCommerce white paper from The Fraud Practice and CardinalCommerce details the results and key findings from the second annual Consumer Authentication Survey highlighting trends and changes in the use and perception of these programs in just one year’s time. The Consumer Authentication survey and report white paper is now available and The Fraud Practice and CardinalCommerce will host a webinar in April to further discuss the survey results.

Now in its second year, the Consumer Authentication Survey once again collected industry perspectives regarding the market sentiment, use and implementation of Consumer Authentication programs such as Verified by Visa and MasterCard SecureCode. After setting the baseline with the inaugural Consumer Authentication Survey, the second annual edition provides insight on who is using Consumer Authentication today, how they are using it, what the industry thinks of this technique and why, as well as what has changed in the past year.

Download the Use of Consumer Authentication in eCommerce, Annual Report 2015

Read the full Press Release

Google and Samsung Each Announce Mobile Payment Plans Utilizing Tokenization and Biometric Authentication

Following Apple’s lead Samsung and Google each announced mobile payment services of their own with a similar naming structure. The recently announced Samsung Pay and Android Pay will both make use of fingerprint biometrics to authenticate transactions as well as tokenization, although all three systems have their similarities and differences.

Both organizations announced their planned mobile payment developments at the Mobile World Congress event held in Barcelona. Samsung Pay is expected to launch this summer in South Korea and the United States with a release in Europe planned later. At this stage it is uncertain when Android Pay will be available to the public but it is known that Visa, MasterCard and American Express will support it and there is likely to be more information coming at Google’s annual developer conference in May.

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