to interact safely online will be the most important issue in 2016. THREE COMPONENTS FOR BETTER FRAUD PREVENTION Merchants will focus on creating a frictionless process and eliminating false positives, particularly as users are looking for that fast, no-hassle experience we’ve come to expect on our tablets and smart phones. By harnessing the power of behavioral and biometric analysis, organizations can predict fraud with a very high degree of accuracy by identifying the real user behind the device. Focusing on the good users -- and decreasing customer abandonment and attrition -- can put billions back into merchants’ pockets, The ability to move beyond the machine and truly know your customer will be the differentiator that allows companies to bypass the knowledgebased authentication arms race with fraudsters and leap ahead in terms of customer satisfaction and retention. In the new year, IT security professionals can use a three-pronged approach to achieve this goal of
frictionless user authentication: • Enable business instead of blocking it. Valid user identification creates greater security, which strengthens brand loyalty and increases conversion while protecting brand assets. • Use real-time detection. Measure behavior over time by using an intelligent multi-layer risk prevention platform; this will give you accurate, real-time scoring to let you know exactly who your user is. • Know your user like never before. Use passive biometric and behavioral analytics that enable you to know the user on the other side of the machine. The second point deserves more attention. To go beyond standard fraud detection checks and truly understand the user behind the device, a layered approached—using device and connection, analyzing biometrics, measuring and comparing behavior across networks and over time—is needed. By deploying a continuous evaluation of the user, this empowers organizations to:
• Let real customers self-resolve risk triggers during the transaction process and complete their online experience without additional delay • Figure out how to respond in real time with all the necessary context and data to make a better decision • See high-risk and anomalous activity earlier than ever before • Redirect suspicious users into a different Web experience Fraudsters have proven that they will stop at nothing to take what they want. It’s every merchant’s intention to protect their customers and their own bottom line. The problem is that in defending against the bad users, merchants can unintentionally bar the good users as well. By using biometric and behavioral analytics, though, merchants can not only find the fraudsters but reward the good users with a frictionless experience. That’s why this method will gain prominence in 2016.
College Campuses Expand The Use Of Mobile Devices Beyond Payments By: Michael Cheng
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ear field communication (NFC) technology has a wide range of uses, from location tracking to wireless transactions. A recently published whitepaper by the Smart Card Alliance uncovered how fast-moving sectors are using the beneficial tool outside of payments. The study revealed that college campuses are promoting the technology for identity verification, clearance and data storage. Quinnipiac, Villanova and Arizona State University were the educational institutions mentioned in the paper. The implementation of NFC on campuses has reduced friction in common transactions. In the case of dorm room access, admins can easily provide students with a digital pass
during check-in, instead of relying on the duplication of traditional keys. The solution is fast, secure and completed in near real-time. When it comes to costs, the schools cited in the study reported savings from the annual turnover process of re-keying dorm rooms. Villanova is currently reaping the benefits from the change. It replaced combination locks with mobile phone activated doors. The shift has also reduced the number of lockouts around the facilities. Reproducing a master key and one-day passes can be done instantly, through a centralized key management system. The spread of wireless payments is contributing to the adoption of
related technologies associated with smartphones in college campuses. Because students have their devices with them at all times, it makes sense for schools to add value to mobile usage around the campus. “NFC is supported by comprehensive technology standards and payment applications using NFC have been deployed using industry standards,” wrote the Smart Card Alliance. “However, many of the nonpayment applications have no industry standards or have standards that are only just emerging. The lack of standards within each non-payment vertical (e.g., automotive, air travel) is a barrier to broad implementation of NFC applications and acceptance infrastructure.”
Payment Quarterly | Q1 2016
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