Samsung Pay’s New Wrinkle Is a Stripe

Posted on March 4th, 2015 by Dan Rampe

SamsungPay

Following on the Heels of Apple Pay Comes Samsung Pay with Magnetic-Stripe Radio Field Technology

Samsung’s recent acquisition of LoopPay, which provides Samsung with near-field communication (NFC) and magnetic-stripe radio field capabilities, makes it possible for Samsung to launch Samsung Pay this summer. The service, which will be available on Galaxy S6 and S6 Edge smart phones, attempts to go Apple Pay one better by offering magnetic-stripe tech. This will presumably let consumers use Samsung Pay at approximately 8 million point-of-sale terminals in the U.S.

In a thorough and well-researched piece on digitaltransactions.net, Kevin Woodward discusses in detail everything from how Samsung Pay works to possible pitfalls it faces in the highly competitive mobile-wallet market.

The following has been excerpted from his article and edited to fit our format. You may find the full article by clicking on this link.

How Samsung Pay works

[A] registered user presses a button on a…fob or within the app on a smart phone…. [The user] selects the payment card and presses the Tap to Pay button. Data is wirelessly transmitted to the point-of-sale reader using a magnetic field that any POS terminal can read. The signal emulates the same magnetic field change as when a mag-stripe card is passed through a reader. Samsung is calling this “Magnetic Secure Transmission.”

Offering users more POS terminals than Apple Pay

[The] ability to use existing mag-stripe readers in POS terminals stands out from Apple Pay, which requires an NFC terminal. Estimates peg the number of contactless NFC POS terminals at approximately 220,000. There are an estimated 8 million POS terminals in the United States that accept mag-stripe payments.

Will consumers be confused?

[Consumers] may have some confusion about how to use Samsung Pay with a mag-stripe reader, says Pascal Caillon, general manager of North America for U.K.-based Proxama, a mobile commerce technology company. “For each different POS [terminal], consumers will have to determine where to place the handset next to the mag-stripe reader to conduct the transaction, leading to possible confusion or fear of trying it,” Caillon says. “Consumers really don’t know where to bring the phone to.”

Mag-stripe a short-term advantage that will peter out

While Samsung’s move in the highly-competitive mobile-wallet arena has potential, it may not pan out as well in the long term, analysts suggest.

“They’re putting a lot of energy behind the LoopPay acquisition, which is great in the short term,” says Thad Peterson, senior analyst at Boston-based Aite Group LLC. But over time, “NFC is the long-term solution.”

Payments ecosystem experience

Another hurdle may be Samsung’s lack of experience building a payments ecosystem, such as Apple has done, Nick Holland, a senior analyst who follows mobile payments at Javelin Strategy & Research, a Pleasanton, Calif.-based consultancy, tells Digital Transactions News. “It’s impressive technologically,” Holland says, “but that’s what Samsung is good at. But the problem is they’re not ecosystem builders.”

Then there’s Google

Google’s announcement… that it was buying Softcard, and struck deals with three major U.S. wireless networks—Softcard’s owners—to place the Google Wallet on upcoming Android smart phones… “shows Google is far more serious than they have been for some time,” Holland says. “Their absence was not indicative of them leaving, but regrouping and working out their next steps.”

MasterCard and Visa setting the standards

As for the payments industry overall, the advent of Samsung Pay, and its ilk, is a positive for merchant acquirers, Rick Oglesby, senior researcher at Centennial, Colo.-based Double Diamond Payments Research, tells Digital Transactions News. “These wallets are all converging around Visa, MasterCard standards,” Oglesby says. “There are not new transaction methods that have to happen at the point of sale. Now we know the payment transactions will run through legacy networks.”

Did anybody mention CurrentC?

While Samsung Pay can be used at most POS terminals, not all merchants may want that. When Apple Pay debuted, retailers CVS and Rite-Aid turned off the NFC component in their POS terminals because they intend to offer a rival mobile wallet called CurrentC. Developed by the Merchant Customer Exchange (MCX)—a group of retailers hoping to leverage lower payment processing costs and consumer spending data—CurrentC is still in testing.

Merchants possibly blocking transactions?

Merchants wanting to thwart Samsung Pay won’t be able to turn off the magnetic-stripe readers in their devices, Oglesby says, but they might be able to identify tapped transactions and block them. “It will be interesting to see what the MCX merchants decide,” he says.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions leveraging a global shared digital identity network and real time customer driven analytics platform.  These solutions help customers differentiate between trusted users and potential fraud resulting in reduced friction, incremental revenue and lower fraud and operational costs.

ThreatMetrix secures customers against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over one billion monthly transactions and protects more than 250 million active user accounts across 3,000 customers and 15,000 websites and mobile applications. ThreatMetrix is deployed by industry leaders across financial services, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

 

ThreatMetrix Now Protects More Than 1 Billion Mobile and Web Transactions Each Month

Posted on March 3rd, 2015 by Dan Rampe

1billion

Continued Expansion of The ThreatMetrix® Global Trust Intelligence Network Enables Businesses to Stop Fraud, Not Customers – in Real Time

Mobile PR ImageSan Jose, CA – March 3, 2015 – ThreatMetrix®, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announced that its ThreatMetrix® Global Trust Intelligence Network (The Network) now analyzes and protects more than one billion mobile and Web-based transactions per month. Transaction volume is expected to continue growing and by the end of 2015, ThreatMetrix expects to analyze more than 15 billion total transactions. This volume is greater than the annual number of e-commerce transactions from the world’s largest e-commerce markets or the world’s biggest payment networks.1 The Network enables businesses to seamlessly differentiate between trusted consumers and potential cybercriminals. This prevents hundreds of millions of dollars in fraud losses globally, without impacting the customer experience for legitimate users.

“One of the biggest drivers of our network’s growth is the rapid adoption of ThreatMetrix mobile solutions,” said Andreas Baumhof, chief technology officer, ThreatMetrix. “We continue to see strong demand from customers looking to extend protection to their mobile applications. Users connect to businesses both via mobile apps and browsers, so it’s critical to protect both channels through a single solution that delivers seamless authentication across devices and provides high levels of fraud protection.

“Of the one billion transactions analyzed monthly by ThreatMetrix, more than 250 million were from mobile devices from more than 200 countries,” said Baumhof. “This is a testament to the reach of The Network and we expect this growth to continue as many of the world’s most valued companies and brands protect their applications using the ThreatMetrix solution. We are seeing more than 20 million new mobile deployments each month representing more than 25 percent of the total new devices being added to our network, making us one of the largest mobile security providers. It is, however, critical for us to provide a true cross-channel solution that delivers an integrated risk assessment across all connected devices – a capability that has proven to be invaluable for our customers.”

Growth of ThreatMetrix’s mobile solution further enhances the value of The Network. By creating an anonymized digital identity of consumers based on device, persona and behavior from every interaction (account origination, login and access, and purchase) and comparing it in real time to previous activity, ThreatMetrix customers can accurately identify their customers from cybercriminals – regardless of channel.

“Cybercrime is not a fight that can be won individually and many businesses are realizing the benefits of using an anonymized network to assess consumers’ digital identities in order to differentiate between trusted consumers and cybercriminals without adding friction,” said Alisdair Faulkner, chief products officer ThreatMetrix. “ThreatMetrix’s single, integrated solution is built on a common platform leveraging the shared intelligence of its network and offers the benefits of predictive analytics to protect businesses and reduce customer friction while delivering solutions specific to the device and channel. The ThreatMetrix mobile solution extends the network’s value by adding a deep understanding of mobile devices.”

Use of mobile devices to access banking and commerce applications is growing globally. Consumers from emerging economies show higher percentages of mobile transactions than developed economies. However, devices from these countries are more susceptible to potential attacks driven by the proliferation of jailbroken or rooted devices.

“Utilizing ThreatMetrix’s extensive threat intelligence library to detect malware-altered applications or jailbroken or rooted (also known as compromised) devices provides businesses an accurate predictor of the risk level associated with any mobile device,” said Faulkner.

The ThreatMetrix mobile solution can benefit businesses by:

  • Understanding users and associated devices – ThreatMetrix enables businesses to understand users and devices by leveraging threat intelligence from The Network, including whether a device has previously accessed the account it’s logging into, what type of behavior was associated with a device previously, and more.
  • Effective fraud intelligence without in-house expertise – ThreatMetrix detects mobile-based malware and identifies devices that have been jailbroken or rooted and provides a vast library of digital identities, negating the need for in-house experts.
  • Ensuring application integrity – Cybercriminals can easily integrate malware and scrape credentials through keylogging to access a business app or website with false credentials, exposing businesses to brand and reputation risk. ThreatMetrix can detect if a protected application is in a pure state and was not tampered with prior to allowing communication with a business’ infrastructure.

Faulkner will present on the ThreatMetrix mobile solution at Mobile World Congress, the world’s leading mobile event, March 2-5 in Barcelona. The conference features more than 250 speakers, including leaders of mobile operators, infrastructure providers, device makers and Internet companies.

ThreatMetrix Resources

About ThreatMetrix

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions leveraging a global shared digital identity network and real time customer driven analytics platform.  These solutions help customers differentiate between trusted users and potential fraud resulting in reduced friction, incremental revenue and lower fraud and operational costs.

ThreatMetrix secures customers against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over one billion monthly transactions and protects more than 250 million active user accounts across 3,000 customers and 15,000 websites and mobile applications. ThreatMetrix is deployed by industry leaders across financial services, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

© 2015 ThreatMetrix. All rights reserved. ThreatMetrix, TrustDefender ID, TrustDefender Cloud, TrustDefender Mobile, TrustDefender Client, the TrustDefender Cybercrime Protection Platform, ThreatMetrix Labs, and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

Media Contacts

Dan Rampe
ThreatMetrix
Tel: 408-200-5716
Email: drampe@threatmetrix.com

Beth Kempton
Walker Sands Communications
Tel: 312-241-1178
Email: beth.kempton@walkersands.com

1 Internal ThreatMetrix calculation based on projected 2015 ThreatMetrix transactions, annual projected eCommerce volume for US, China and global payment networks.

Protecting 1 Billion Mobile and Web Transactions Each Month…and Counting

Posted on March 3rd, 2015 by Dan Rampe

1billion

The ThreatMetrix Global Trust Intelligence Network’s Expansion Means More Businesses Stopping Fraud in Real Time without Customer Friction

Mobile PR ImageThreatMetrix’s Global Trust Intelligence Network (The Network) enables businesses to seamlessly differentiate between trusted consumers and potential cybercriminals. This prevents hundreds of millions of dollars in fraud losses globally, without impacting the customer experience for legitimate users.

15 billion transactions analyzed by end of 2015

Using The Network, ThreatMetrix® expects to analyze more than 15 billion total transactions by the end of this year. This volume is greater than the annual number of e-commerce transactions from the world’s largest e-commerce markets or the world’s biggest payment networks. These calculations are based on projected 2015 ThreatMetrix transactions and the annual projected e-commerce volume for U.S., China and global payment networks.

Andreas Baumhof, ThreatMetrix’s chief technology officer, on the rapid adoption of ThreatMetrix mobile solutions

“One of the biggest drivers of our network’s growth is the rapid adoption of ThreatMetrix mobile solutions. We continue to see strong demand from customers looking to extend protection to their mobile applications. Users connect to businesses both via mobile apps and browsers, so it’s critical to protect both channels through a single solution that delivers seamless authentication across devices and provides high levels of fraud protection.

“Of the one billion transactions analyzed monthly by ThreatMetrix, more than 250 million were from mobile devices from more than 200 countries,” said Baumhof. “This is a testament to the reach of The Network and we expect this growth to continue as many of the world’s most valued companies and brands protect their applications using the ThreatMetrix solution. We are seeing more than 20 million new mobile deployments each month representing more than 25 percent of the total new devices being added to our network, making us one of the largest mobile security providers. It is, however, critical for us to provide a true cross-channel solution that delivers an integrated risk assessment across all connected devices – a capability that has proven to be invaluable for our customers.”

Value of The Network increases as The Network grows

By creating an anonymized digital identity of consumers based on device, persona and behavior from every interaction (account origination, login and access, and purchase) and comparing it in real time to previous activity, ThreatMetrix clients can accurately identify their customers from cybercriminals – regardless of the channel. And the greater the number of transactions analyzed, the better the intelligence.

Alisdair Faulkner, ThreatMetrix’s chief products officer, on The Network’s shared intelligence benefits to customers

“Cybercrime is not a fight that can be won individually and many businesses are realizing the benefits of using an anonymized network to assess consumers’ digital identities in order to differentiate between trusted consumers and cybercriminals without adding friction.

“ThreatMetrix’s single, integrated solution is built on a common platform leveraging the shared intelligence of its network and offers the benefits of predictive analytics to protect businesses and reduce customer friction while delivering solutions specific to the device and channel. The ThreatMetrix mobile solution extends the network’s value by adding a deep understanding of mobile devices.”

The threat from mobile devices from accessing banking and commerce apps

Consumers from emerging economies show higher percentages of mobile transactions than developed economies. However, devices from these countries are more susceptible to potential attacks driven by the proliferation of jailbroken or rooted devices.

“Utilizing ThreatMetrix’s extensive threat intelligence library to detect malware-altered applications or jailbroken or rooted (also known as compromised) devices provides businesses an accurate predictor of the risk level associated with any mobile device,” said Faulkner.

ThreatMetrix’s mobile solution benefits businesses by:

  • Understanding users and associated devices – ThreatMetrix enables businesses to understand users and devices by leveraging threat intelligence from The Network, including whether a device has previously accessed the account it’s logging into, what type of behavior was associated with a device previously, and more.
  • Effective fraud intelligence without in-house expertise – ThreatMetrix detects mobile-based malware and identifies devices that have been jailbroken or rooted and provides a vast library of digital identities without the need for in-house experts.
  • Ensuring application integrity – Cybercriminals can easily integrate malware and scrape credentials through keylogging. Accessing a business app or website with false credentials, they can put a business’s brand and reputation at risk. ThreatMetrix can detect if a protected application has not been tampered with prior to allowing communication with a business’ infrastructure.

Alisdair Faulkner presents at Mobile World Congress

Faulkner will present on the ThreatMetrix mobile solution at Mobile World Congress, the world’s leading mobile event, March 2-5 in Barcelona. The conference features more than 250 speakers, including leaders of mobile operators, infrastructure providers, device makers and Internet companies.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions leveraging a global shared digital identity network and real time customer driven analytics platform.  These solutions help customers differentiate between trusted users and potential fraud resulting in reduced friction, incremental revenue and lower fraud and operational costs.

ThreatMetrix secures customers against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over one billion monthly transactions and protects more than 250 million active user accounts across 3,000 customers and 15,000 websites and mobile applications. ThreatMetrix is deployed by industry leaders across financial services, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

Floridians Go Class Action on Anthem

Posted on March 2nd, 2015 by Dan Rampe

Anthem

Central Florida Law Firm Filed Proposed Class-Action Suit in Orlando Federal Court as Fallout from Anthem Breach Continues

Though Florida was not named as one of the states hardest hit by the Anthem breach, it is one where a class-action suit was filed on behalf of Florida customers of Indiana-based Anthem. As they say at Orlando’s Walt Disney World, “It’s a small world after all.”

Two representative plaintiffs, David and Maria Haag, live in the Orlando area. Their case is being handled by lead attorney John Yanchunis of Morgan & Morgan, who said he didn’t yet know how many Floridians may have been affected by the breach.

In a story on orlandosentinel.com, Paul Brinkmann describes the background of the suit against the nation’s second largest healthcare insurance company which administers health plans offered by Blue Cross and Blue Shield. The following has been excerpted from Brinkmann’s story and edited to fit our format. You may find the full article by clicking on this link.

Lead attorney experienced with data breaches

Yanchunis is also involved in suing over data breaches at Target and Home Depot. “I believe this is the most significant data breach yet,” Yanchunis said of the Anthem data breach.

Anthem data not encrypted

There is no law that such data [such as that collected by Anthem] must be encrypted, and some companies decline to encrypt the data so that it is more accessible.

Suit charges Anthem negligent in protecting data

The new Orlando lawsuit alleges that Anthem was negligent in not protecting the data more. Yanchunis said encrypting data is expensive, but data breaches are more expensive. The stolen data include[d] names, dates of birth, social security numbers, health care ID numbers, home addresses, email addresses, and income data [of 80 million customers]. [Anthem didn’t] believe credit card information was taken.

ThreatMetrix builds trust online and on mobile, by offering market-leading advanced fraud prevention and frictionless context-based security solutions leveraging a global shared digital identity network and real time customer driven analytics platform.  These solutions help customers differentiate between trusted users and potential fraud resulting in reduced friction, incremental revenue and lower fraud and operational costs.

ThreatMetrix secures customers against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over one billion monthly transactions and protects more than 250 million active user accounts across 3,000 customers and 15,000 websites and mobile applications. ThreatMetrix is deployed by industry leaders across financial services, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

Sandpiper: An Eagle When It Comes to Fighting Cybercrime

Posted on February 27th, 2015 by Dan Rampe

Europol

EC3 Supports 18-Month EU-Funded “Project Sandpiper” to Stop Payment Card Fraud in Its Tracks

The latest statistics published by the European Central Bank reveal that card-not-present (CNP) fraud is on the rise accounting for 60% of all fraud losses on cards issued in the European Union. To address the problem, Europol’s European Cybercrime Centre (EC3) has launched several investigations.

Project Sandpiper

Initiated by UK authorities and supported by Europol’s European Cybercrime Centre (EC3), Project Sandpiper took out after the bad guys. The score after eighteen months: 59 arrests; 32 prosecutions; 17 convictions; 52,812 compromised card numbers recovered; £23 million ($35 million) estimated savings to the banking industry; and the disruption of 5 organized crime groups misusing electronic payments mainly in overseas destinations.

Troels Oerting, head of EC3

An article on eurasiareview.com (link to article) quotes the head of the European Cybercrime Centre, Troels Oerting, who said, “The criminal networks involved in this sophisticated electronic payment crime have been taken down as a result of many months of hard work by police officers and prosecutors in the European Union. Through the international cooperation of law enforcement authorities, the European Commission and Europol, as well as cooperation with the financial industry, European customers’ payment transactions are safer. We continue our fight against this crime. The criminals continue to develop new methods for stealing our identities, money and ideas online, and we have to continue and further develop operations like Sandpiper and Skynet. [Skynet is the codename of a new EU-funded project. Just launched, it focuses on international cooperation to combat online CNP fraud. Six EU Member States are involved.]”

A joint EU effort

According to the eurasiareview.com story, Europol’s information and analysis systems are used to exchange and cross-check the intelligence received from member states.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

 

 

Visa, MasterCard: Different Paths. Same Destination.

Posted on February 26th, 2015 by Dan Rampe

Visa and Mastercard

Beyond EMV, Industry Giants Look to Upgrade Security Measures to Improve Protection for Shoppers and Merchants

Coming this spring to a store near you – better protection from fraud and theft. At least that’s what Visa and MasterCard are hoping to accomplish with two new programs.

In her story on consumerist.com, Kate Cox describes the technology each company is planning to introduce. The following has been excerpted from Cox’s piece and edited to fit our format. You may find the full article by clicking on this link.

MasterCard’s two-pronged approach

One element is a program called MasterCard Safety Net. The company claims … that Safety Net “provides an independent layer of security on top of the tools and policies of financial institutions, by monitoring and blocking specific transactions based on selected criteria.”

The company promises, “Safety Net is designed to intervene only in extreme cases to block fraudulent activity.”

Biometrics

The other half of MasterCard’s strategy is biometrics. The company is pairing with First Tech Federal Credit Union to work on a pilot program that will allow customers to use unique identifiers — including face, fingerprint, and voice matching — to authenticate and verify transactions.

EMV transition going well

MasterCard reports that the transition is “well underway”, with half of all cards and just under half (47%) of all point-of-sale terminals projected to be chip-enabled by the end of 2015.

Visa takes a different approach that works like Apple Pay

Where MasterCard is focusing on making the customer prove a charge is authorized, Visa is working on scrambling information that might be stolen, so [that thieves can’t use it.].

[Called] the Visa Token Service, [it] works in basically the same way Apple Pay does (in fact, it’s part of Apple Pay): instead of transmitting your 16-digit card number, expiration date, and security code, Visa instead shares a unique number — your token — with the merchant getting paid.

If someone intercepts the transmission or the system and manages to yank that token, all they have is a string of numbers. It’s not a thing that can be cloned onto a new payment card or used in any meaningful way.

Beyond mobile

What’s new about it is that Visa is trying to expand the Token Service out of just mobile payments, and into traditional online retailers as well. When your credit card is stored on the site of a merchant you regularly shop with, that’s a weakness: anyone who breaches that database has…everything they need to commit fraud on your card. But if the merchant stores a random token in your account information, instead of your credit card number, that data once again becomes meaningless to thieves even while it remains convenient to consumers.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

 

 

 

ThreatMetrix to Speak and Exhibit Context-Based Security Solutions at 2015 BAI Payments Connect Conference

Posted on February 25th, 2015 by Dan Rampe

BAI Payments

 

Alisdair Faulkner, Chief Products Officer, to Participate in a Panel on Strategies for Combatting Payment Fraud Using Enhanced Tools and Technology

San Jose, CA – February 25, 2015 – ThreatMetrix®, the fastest-growing provider of context-based security and advanced fraud prevention solutions, today announced it is speaking and exhibiting at the BAI Payments Connect Conference, March 2-4 at Phoenix Convention Center West Building in Phoenix, Ariz.

BAI Payments Connect Conference is a one-of-a-kind event that focuses on helping companies keep pace with and adapt to today’s fast-track complex payments space. More than 700 innovative payments professionals and solution providers will converge to focus on current issues, challenges and opportunities in the payments space. Participants can attend expos, demo sessions and the second-annual digital day, which will focus on how to take a business into the digital world. This year, attendees will have the opportunity to vote for their favorite, most innovative demo presentation, and the organization with the most votes will be the BAI Payments Innovation Track Award winner.

ThreatMetrix will exhibit its context-based security solutions at booth 301, giving attendees an opportunity to view its alternatives to outdated legacy-based customer authentication solutions. Additionally, Faulkner will participate in a panel discussion on Tuesday, March 3 from 9:45 a.m. – 10:45 a.m. MST in room 106A, focusing on “Combatting Payment Fraud through Enhanced Tools and Technology,” alongside several noted payments industry security experts.

”Payments professionals work solely in the transfer of money, meaning their business is one of the biggest targets for cybercriminals,” said Faulkner. “Unfortunately, many businesses within the industry rely on security solutions that create friction by authenticating returning customers and failing to recognize them based on minor changes in their environment – such clearing their cookies or changing browsers, for example. At the BAI Conference, attendees will learn about ThreatMetrix’s context-based authentication capabilities, which offer secure, cost effective and frictionless user access for the payments industry through real-time behavior and contextual analytics derived from analyzing billions of global transactions.”

ThreatMetrix recently began an initiative to offer alternatives to outdated authentication solutions for banks and financial institutions that includes solutions for financial services institutions to provide frictionless customer logins that decrease operational costs and improve cybercrime detection. The goal of many online and mobile banking institutions is to ensure a top-notch customer experience and increase revenue. ThreatMetrix’s growing shared global intelligence network delivers secure, accurate authentication in real time to reduce user friction and ensure a high-level of customer satisfaction.

“The payments industry is booming right now, mobile transactions are doubling year over year and our focus is to support this growth with transparent fraud solutions that don’t interfere with business,” said Faulkner. “ThreatMetrix is committed to rapid evolution in order to keep pace with the industry by leveraging a collective approach to cybersecurity to combat payment fraud. I am very excited to discuss the growth and success of our global shared network with BAI attendees at this year’s conference.”

ThreatMetrix authenticates customer payments using real-time identity and access analytics that leverage the power of the ThreatMetrix® Global Trust Intelligence Network (The Network), the world’s largest shared intelligence network. The solution protects financial Web and mobile applications against account takeover, payment fraud, and fraudulent account registrations as a result of stolen credentials obtained from malware, social engineering, phishing and data breaches.

For more information on the BAI Payments Connect Conference, click here.

ThreatMetrix Resources

About ThreatMetrix

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly web and mobile transactions protecting more than 210 million active user accounts across 3,000 customers and 15,000 websites and mobile applications.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

© 2015 ThreatMetrix. All rights reserved. ThreatMetrix, TrustDefender ID, TrustDefender Cloud, TrustDefender Mobile, TrustDefender Client, the TrustDefender Cybercrime Protection Platform, ThreatMetrix Labs, and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

Media Contacts
Dan Rampe
ThreatMetrix
Tel: 408-200-5716
Email: drampe@threatmetrix.com

Beth Kempton
WalkerSands Communications
Tel: 312.241.1178
Email: beth.kempton@walkersands.com

ThreatMetrix Demos Alternatives to Outdated Legacy Authentication Solutions at BAI Payments Connect 2015

Posted on February 25th, 2015 by Dan Rampe

 

BAI Payments

 

Plus Security Experts Join ThreatMetrix’s Alisdair Faulkner for a Panel on “Combatting Payment Fraud through Enhanced Tools and Technology”

More than 700 payments professionals and solution providers will attend BAI Payments Connect 2015 from March 2-4 at Phoenix Convention Center West Building in Phoenix, Arizona. A one-of-a-kind event concentrating on current issues in the payments space, BAI Payments Connect provides the opportunity to attend expos, panel discussions and demo sessions. In addition attendees can take part in the second-annual digital day, focusing on how to take a business into the digital world.

The most innovative demo

This year, attendees can cast their vote for their favorite, most innovative demo presentation. And the organization with the most votes will be the BAI Payments Innovation Track Award winner.

ThreatMetrix will exhibit at booth 301

ThreatMetrix recently began an initiative offering alternatives to outdated authentication solutions for banks and financial institutions (including financial services institutions). These solutions provide frictionless customer logins that lower operational costs and improve cybercrime detection.

ThreatMetrix will be exhibiting its context-based security solutions at booth 301 offering an opportunity for attendees to view the company’s alternatives to outdated legacy-based customer authentication solutions.

Alisdair Faulkner, Chief Products Officer, ThreatMetrix in panel discussion

Joined by other noted security experts, Alisdair Faulkner will participate in a panel discussion on Tuesday, March 3 from 9:45 a.m. – 10:45 a.m. MST in room 106A. As noted in the headline, the discussion is about “Combatting Payment Fraud through Enhanced Tools and Technology.”

”Payments professionals work solely in the transfer of money, meaning their business is one of the biggest targets for cybercriminals,” said Faulkner. “Unfortunately, many businesses within the industry rely on security solutions that create friction by authenticating returning customers and failing to recognize them based on minor changes in their environment – such clearing their cookies or changing browsers, for example. At the BAI Conference, attendees will learn about ThreatMetrix’s context-based authentication capabilities, which offer secure, cost effective and frictionless user access for the payments industry through real-time behavior and contextual analytics derived from analyzing billions of global transactions.”

Shared global intelligence

ThreatMetrix’s growing shared global intelligence network delivers secure, accurate authentication in real time to reduce user friction and ensure a high-level of customer satisfaction. ThreatMetrix is able to authenticate customer payments using real-time identity and access analytics that leverage the power of the ThreatMetrix Global Trust Intelligence Network (The Network), the world’s largest shared intelligence network. The solution protects financial Web and mobile applications against account takeover, payment fraud, and fraudulent account registrations as a result of stolen credentials obtained from malware, social engineering, phishing and data breaches.

Faulkner on ThreatMetrix solutions for the payments industry

“The payments industry is booming right now, mobile transactions are doubling year over year and our focus is to support this growth with transparent fraud solutions that don’t interfere business,” said Faulkner. “ThreatMetrix is committed to rapid evolution in order to keep pace with the industry by leveraging a collective approach to cybersecurity to combat payment fraud. I am very excited to discuss the growth and success of our global shared network with BAI attendees at this year’s conference.”

For more information on the BAI Payments Connect Conference, click here.

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations resulting from malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly web and mobile transactions protecting more than 210 million active user accounts across 3,000 customers and 15,000 websites and mobile applications.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

Score: mCommerce 42 – eCommerce 13

Posted on February 24th, 2015 by Dan Rampe

Mobile Commerce

CAGR (Compound Annual Growth Rate) Has Mobile Commerce Growing at 3X the Rate of eCommerce 42 Percent to 13 Percent

Research conducted by PayPal in conjunction with market research firm, Ipsos, found that from 2013 to 2016, the multi-country average CAGR for mCommerce is projected to be 42 percent as opposed to 13 percent for eCommerce (including mobile commerce).

ThreatMetrix’s Alisdair Faulkner predicted mCommerce’s rapid growth and warned of possible dangers

The growth in mCommerce was hardly a surprise to Alisdair Faulkner, chief products officer at ThreatMetrix. In a news release titled, Mobile Will Represent More Than Half of Transactions During the 2015 Holiday Season: ThreatMetrix Outlines Cybercrime Predictions for the New Year to Help Companies Protect Against Growing Threats, Faulkner wrote, “Consumers are far more comfortable shopping on mobile devices than they were even a year ago, and that trust is going to continue to grow.” He warned however that “many businesses face difficulties determining the authenticity of mobile transactions through hidden cookies and geo-location data. Leveraging a global network of trust intelligence enables businesses to differentiate between previously authenticated users and potential fraudsters and will be the best way to protect sensitive information and customers against cybercrime in 2015.”

The PayPal-Ipsos study

An article on thepaypers.com reports on the PayPal-Ipsos study which examined the mobile commerce habits of 17,600 consumers in 22 countries. The following has been excerpted from thepaypers.com piece and edited to fit our format. You may find the full article by clicking on this link.

From 1 percent in 2011 to 20 percent in 2015

Mobile payment volume has grown significantly from 2011. Currently, mobile accounts for 20% of its overall purchase volume worldwide, from 1% in 2011. In the US, mobile commerce is anticipated to grow from USD 54.6 million in 2014 to USD 96.3 million in 2016. Compared to the roughly 9% – 11% y-o-y increase in ecommerce, m-commerce in the US has a projected growth rate of 26% to 32% each year through 2016. Globally, mobile commerce is estimated to grow from roughly USD 102 billion in 2013 to roughly USD 291 billion in 2016.

mCommerce: rapidly growing in popularity around the globe

In the UAE, mobile shopping makes up for 24% of overall online spending. In China, that number is 21% and Turkey is in the third place, at 19%. In terms of smartphone-shopping density, more than 68% of Chinese online consumers said they have used their mobile devices to make purchases on a smartphone in 2014. The number is only slightly lower for UAE shoppers, at 57%, and 53% for Turkish consumers. In the US, 31% of consumers report that they have used their smartphones to shop in the past 12 months.

18-34 demographic

Overall, a third of online shoppers surveyed said they have used their smartphone for making an online purchase in the past 12 months. The increase in mobile shopping is being driven by smartphone shoppers between the ages of 18-34 (59% of smartphone shoppers in that age bracket reported using mobile to shop online). When comparing individual companies to the overall global average of 33%, the US figures report 31%, placing the US behind the UK (33%), France (36%), Spain (34%), Switzerland (32%), Russia (34%), Israel (37%), Turkey (53%), Ukraine (57%), Brazil (34%), Mexico (46%), Australia (33%) and China (68%).

Apps vs. browsers

Globally, 64% of smartphone users reported using an app for purchases as opposed to the 52% who used mobile browsers. The reasons cited for that are convenience and speed. Convenience was cited by 35% of users and speed by 30%. Instant payment confirmation and having a reminder in the app to use discounts or coupons were two other major reasons cited by those surveyed.

In terms of actual mobile shopping behaviors today, 36% of consumers say they use mobile to get info on a product, 27% use mobile to find a business and 25% use devices to read reviews on particular stores or products. But consumers revealed that, in the future, they are interested in using their smartphones for more mobile-centric tasks. For example, consumers said that they would be interested in using tap and pay at the register with their smartphone (16%), mobile ordering through app or browser (15%), and to compare prices while shopping in stores (14%).

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.

 

 

What’s Happening with Mobile Device Payments Is Criminal

Posted on February 23rd, 2015 by Dan Rampe

Mobile Devices

Mobile Device Fraud Makes Up a Disproportionate Share of the $6 Billion Fraud Costs Merchants and Card Issuers in the U.S. Each Year

Forrester Research says mobile payments accounted for $52 billion worth of U.S. transactions in 2014, up from $32 billion in 2013. And this year that number is expected to hit $67 billion.

A LexisNexis survey of 1,100 companies found that while mobile payments account for 14 percent of transactions among merchants, they make up 21 percent of fraud cases. In her story on bloomberg.com, Olga Kharif details how cyberthieves have continued to shift their focus to mobile devices. The following has been excerpted from her piece and edited to fit our format. You may find her complete article by clicking on this link.

More mobile fraud than on PCs

“We certainly see a surge in mobile payment attacks,” says Tomer Barel, chief risk officer at PayPal, who says his company deals with more cases of fraud on mobile devices than on PCs. “There are many more avenues for fraudsters to try.”

Every dollar of mobile fraud costs merchants $3.34

Each dollar worth of misbegotten mobile payments winds up costing a fooled merchant $3.34. That’s slightly more than the cost of a fraudulent credit card swipe or mail order, 27 percent more than a similar payment made from a PC.

Merchants aren’t equipped to handle mobile fraud

Along with the cost of lost merchandise, the total includes investigation of the fraud. That’s tougher on phones than on PCs, because many businesses aren’t equipped to track mobile devices’ unique identifiers such as IP addresses. Stores often don’t catch when a card issued in Los Angeles is used for a mobile order from Mexico, says Aaron Press, director of e-commerce and payments at LexisNexis Risk Solutions. “It’s kind of a wake-up call,” he says.

Lower-tech fraud

Some mobile fraud remains low-tech. Last year, the Better Business Bureau warned consumers about a scam in which people posted absurdly cheap offers for used cars online, then tricked interested buyers into wiring funds through a phony version of Google Wallet.

Higher-tech fraud

Other frauds are more technical, such as the hackers who found a bug in a Chilean public transportation app that let them top off their travel credits for free.

The weak link

Like the brief flurry of duplicate charges that accompanied Apple Pay’s debut in October, such glitches highlight the vulnerability inherent in a system that requires banks, card networks, and software makers to keep pace with thieves. “If you don’t make the proper investment, they’ll be attracted to the weakest link,” says PayPal’s Barel.

Biometrics may stop some cybercriminals

Smartphone operating systems, at least, are tougher to infiltrate than those of PCs. Phones with biometric sensors can also make a person’s identity tougher to steal. Mobile payment service LoopPay says it’s adding support for biometric features such as Apple’s fingerprint reader, despite hackers’ claims that they can fool the iPhone’s sensor. Rival CurrentC says it’s considering similar measures….

“There’s no perfect system,” says Will Graylin, chief executive officer of LoopPay. “It’s always a game of cat and mouse.”

ThreatMetrix builds trust on the Internet by offering market-leading advanced fraud prevention and frictionless context-based security solutions. These solutions authenticate consumer and workforce access to mission critical applications using real-time identity and access analytics that leverage the world’s largest trusted identity network.

ThreatMetrix secures enterprise applications against account takeover, payment fraud, fraudulent account registrations, malware, and data breaches. Underpinning the solution is the ThreatMetrix® Global Trust Intelligence Network, which analyzes over 850 million monthly transactions and protects more than 210 million active user accounts across 3,000 customers and 15,000 websites.

The ThreatMetrix solution is deployed across a variety of industries, including financial services, enterprise, e-commerce, payments, social networks, government and insurance.

For more information, visit www.threatmetrix.com or call 1-408-200-5755.

Join the cybersecurity conversation by visiting the ThreatMetrix blogFacebookLinkedIn and Twitter pages.