Some New Ways of Fighting Fraud and Why We Need Them

Financial institutions, merchants and payment processors globally are fighting against cyberattacks. The estimated volume of third-party fraud transactions in 2013 was 34.1 billion, with a value of $6.7 billion. In January 2014 alone, a single cyberattack exposed more than 105 million identities. The revenue lost due to online fraud was an estimated $3.4 billion in 2011 which increased to $3.5 billion in 2012. This study was based on the profiling of 312 online retail companies based in the United States and Canada. With online commerce booming, the need to curtail fraud has become imperative. A bunch of players in the market have brought in new solutions to address the concerns of fraud. Let’s look at two of the most interesting ones:

Terbium Labs: Terbium Lab, a new startup based out of Baltimore, says that the company has developed a solution which can identify scenarios when information stolen from companies hits the Dark Web (criminal websites). The solution is targeting a specific market – companies such as Sony and Target spooked by massive data leaks. The product, called Matchlight, screens the Dark Web for its client’s proprietary data and instantly notifies them.

The company’s model revolves around digital fingerprinting. Furthermore, the company does not receive access to any sensitive files of customers from its clients. The company claims its platform identified 30,000 new stolen credit cards and 6,000 hacked email addresses in a matter of seconds.

Bionym: Toronto-based firm Bionym has developed a wristband that uses the human heart’s unique rhythm to verify identities. The solution developed by the company is a wristband called Nymi. The company has launched pilot programs for users to test the band out for making payments. The company believes that its solution stands out of the rest available in the market. The wristband need not be tethered to any device, such as a smartphone. Hence, users can even make payments to goods and services without having a wallet or a mobile phone.

The use cases of Nymi goes beyond payments and security. According to the firm, over a period of time, the solution can eventually act as a replacement for passwords and could unlock homes, car doors, and any other connected device. Bionym has partnered with MasterCard and Royal Bank of Canada for its payments launch project. The solution boasts of three levels of security. The first being the heart rhythm (biometric), the second being the bracelet itself while the third being an authentication device such as a smartphone. The good thing about the solution is that it reads the electrocardiogram only when it is put on. Furthermore, every time the band is removed, the user will have to re-authenticate the heart rhythm when put back on. Halifax has announced that it has created a proof of concept with the Nymi Band and is in initial stages of exploring potential uses of wearables, including the wristband.

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