May 14, 2014
According to a report by emarketer, global ecommerce sales are expected to reach $1.2 Tn by end of 2013. But even with the growth in online commerce or e-commerce, and several innovations later, the credit card security and online payments fraud remain the biggest issues today. Globally according to a study by Nielson, the loss due to online fraud was estimated at $11.27 billion in 2012. In a recent survey by TechRepublic, 79% customers said they would like to shop more online if provided with simpler and secure payment options.
Apart from online fraud happening at the time of remote payments (CNP), the offline payments (proximity payments) done using mobile phones at merchants are also prone to fraud and so are card present situations at POS. We have all read a lot about Target and Neiman Marcus cases.
Another aspect, often ignored, is to look at the revenue leak by inaccurately doing fraud detection and prevention. According to a report from Visa, merchants globally are declining 5% of all transactions due to fear of fraud. Riskified’s independent study found that 80% of the supposedly high-risk orders are from legitimate customers who appear high risk to typical fraud detection systems and are blocked by them. This is an interesting observation because the accuracy of your detection system could mean additional dollars.
In order to counter the rising fraud related issues, several companies have started offering significant fraud detection, security solutions as well as risk management functionalities. Some of them have been discussed here (illustrative, not exhaustive):
SafeNet maintains a strong position in the market in terms of providing security solutions, protecting over 80% of the world’s fund transfers. SafeNet hosts an array of Multi-Factor Authentication products providing authentication as a service (AaaS) as well authentication management platforms. The company provides security products that protect networks, intellectual property, software, and personal identity. SafeNet clicked revenues of approximately $455 Mn in 2010.
For payment sector, the company offers a range of authenticators prominent one being the certificate-based PKI smart cards combined with strong security and cost effective measures. Such smart cards providea single solution for strong authentication an ...