| | Trends

Hold the phone! Preventing payment fraud in a digital world

In today’s consumer-oriented world, companies are constantly striving to improve customer experience. From the many innovative launches, demonstrations and partnerships at Mobile World Congress 2019 last week, it was clear that the financial services industry also has customers top of mind. In this blog post, Jouko Tossavainen, Business Development Manager for Arvato Financial Solutions, talks about his experience at MWC 2019 and highlights why the steady move to mobile is reshaping transaction authentication, as well as consumer expectations and experiences.

With more than 100,000 visitors and hundreds of exhibiting companies, Mobile World Congress is easily the largest mobile trade event of the year. The annual conference took place from February 25 to 28 in Barcelona, Spain, and, as in previous years, it was packed with exhibitors angling for attention.

My role at the event was to identify what future trends and big ideas might influence the financial services industry now or in the future. The conference is also a good forum for us at Arvato Financial Solutions to discuss future opportunities with other industry leaders. This year, mobile transaction authentication was a recurring theme I noted during the conference.

Changing customer expectations

With the steady introduction of new technology, the dawn of online banking, and now the move to mobile, the financial industry has had to evolve to keep up with changing consumer expectations.

This shift from analogue to digital shouldn’t be surprising. After all, there is now a whole generation of young people who’ve never and will never write a cheque, for instance. Many do all their banking online and almost all of them regularly enjoy shopping online.

Digital payment fraud attacks are adding to the complexity of today’s financial environment. Fraudsters are targeting organizations as well as individuals. And ransomware attacks are becoming increasingly sophisticated, thorough and devastating.

This generational mindset-shift combined with a thorny environment is putting greater demands on the financial industry to create innovative and secure solutions. Consumers simply expect the information they need to be at their fingertips. And, everywhere I looked at MWC 2019, I saw cool apps and solutions being launched on mobile that aim to cater to that need.

Strengthening security with behavioural biometrics

ID R&D develop solutions that help protect consumers conducting transactions online against spoofing attacks through voiceface, and behavioural biometrics. Using frictionless authentication to mobile/web applications, virtual assistants and IoT, their solutions ease authentication while strengthening the security of online transactions.

During their hands-on demonstration at MWC, I tried using a phone protected with their software to conduct a fake transaction. Even though I was given the correct username and password, I still couldn’t complete the transaction.

Behavioural biometrics enables the software to identify unique patterns in the way people interact with their device. If it doesn’t recognize the way a device is being used, it won’t let the user complete the transaction.

Cool, huh?

Using gestures the AFS way

Strengthening online transactions has always been a top priority for us. Just last year, AFS announced a partnership with Israeli-based SecuredTouch. At MWC, SecuredTouch was also successfully demonstrated.

SecuredTouch is a leader in using behavioural biometrics to authenticate mobile transactions. Their solution strengthens security, reduces incidents of fraud and improves customer digital experience.

The demonstration showed how it seamlessly collects and analyses over 100 different behavioural parameters like keyboard typing, scroll velocity, touch pressure and finger size to help identify a user and flag suspicious activity when it’s detected.

Seamless solutions key to future tech

Having used both of these digital solutions I can confirm that they are truly seamless. Judging by the buzz surrounding them at MWC, I can seem them being used widely to secure online transactions across devices in the near future.

While MWC 2019 has now concluded, our focus on keeping consumers top of mind and adopting innovative tech like behavioural biometrics, AI and machine learning to improve and strengthen the customer experience continues. Watch this space and learn more about all our current and future endeavours!

Related Posts