05 Oct Fraud mitigation strategies for a secure digitized future
Over the last decade or so, buyer behavior has shifted dramatically. A huge majority of consumers increasingly prefer to shop online rather than at traditional brick-and-mortar establishments. The pandemic has only accelerated the online transactions and all the commerce companies across Southeast Asia have benefited once the new normal was established.
Consumers like to seamlessly move from one online activity to the next, with payments thrown in for good measure. As they do so from a variety of devices, convenience and speed is important and security is paramount. When it comes to online shopping, consumers expect an uninterrupted and frictionless experience. Every transaction, from securing the best online deals to securing the last seat, must go off without a hitch. Even Fintechs have now started issuing cards and come up with many interesting use cases promising convenience to end customers.
On the other hand, as fraudsters become more sophisticated, it becomes more difficult for issuers and merchants to secure payment transactions. Service providers must strike a balance between meeting customer expectations and preventing fraud while adhering to regulatory and compliance requirements.
Payment service vulnerabilities have grown as the migration to digital and mobile customer platforms has accelerated.New solutions have also resulted in faster payment transfers, giving banks and processors less time to identify, counteract, and reclaim the underlying cash when necessary.
Finally, fraud has become more sophisticated, thanks to growing collaboration among bad actors, which includes the sharing of stolen data, new techniques, and knowledge on the dark web.
Some of the many measures adopted by the payment industry to fights frauds
To fight online payment frauds, banks and payment services providers are opting for complete identity authentication services solutions to bridge the gap and meet the present and future market needs for seamless authentication.
EMV® 3DS 2.0 has replaced the previous EMV® 3DS 1.0 protocol. This addresses the growing migration of consumers to mobile platforms and the requirement for smooth user journeys and at the same time more details of the payment transactions are captured and analyzed.
Risk Based Authentication (RBA) is being adopted wherein every payment transaction is given a score after being scrutinized through an array of rules and sophisticated machine learning algorithms. New rules can be configured by the issuers instantly.
The payments industry is also implementing solutions from organizations that specializes in anti-money laundering as a necessity if one needs to secure future compliance at a reasonable cost. Such methods would help to lower the number of false positives while also reducing the number of suspicious activity cases reported.
The central Bank in India has mandated Card on File Tokenization from January next year for all issuers in India and other central banks will soon follow if not already mandated.
Wibmo offers an Authentication Suite that strikes a balance between security and consumer convenience
Based on EMV® 3DS 2.0 protocol ACCOSA IVS provides the frictionless experience users expect when combined with its Risk Based Authentication (RBA) engine. It is designed to meet 2FA and SCA regulatory standards and gives service providers the flexibility to control their own risk profile. It is equipped with an advanced risk engine that aids in the prevention of fraud and provides optimum security with the least amount of hassle to customers.
Wibmo’s ACCOSA IVS calculates risk score of every transaction using its risk and fraud prevention engine, TRIDENT RBA. Service providers can determine path of the transaction based on their risk appetite — to accept the transaction without challenging the cardholder, send it for additional authentication, or to reject it. The risk score is derived from hundreds of data points across channels and devices that enables service providers to arrest fraud in early stages. The combination of strong risk assessment and ﬂexible decision making capabilities enables seamless authentication in the fast-paced world of digital commerce.
We at Wibmo work with more than 150 issuers across the globe. The satisfaction to the end customer when they transact for themselves, or their dear ones is something everyone in Wibmo thrives to achieve.
This article is authored by Sudhir Kamath – Director Sales, APAC. To know more about Wibmo, you can write to firstname.lastname@example.org