We have said before that credit and debit card-issuing financial institutions and merchants have already begun rolling out stronger identity-authentication technology known as EMV (or “chip and pin”) to comply with an adoption deadline in the U.S. of Oct. 1, 2015.
EMV relies on two-factor authentication – a microchip embedded in the card and either a user’s PIN number or signature — to curtail fraudulent purchases with cards in retail transactions. EMV is already widely used in other parts of the world, especially Europe and Canada…and now it’s coming to the U.S.
But bolstering face to face card-present transactions against fraudulent uses through EMV is expected to cause a sharp rise in the incidence of card-not-present (CNP) fraud attempts where transactions are performed online. After all, that’s what fraudsters did in the U.K. and Canada after EMV was implemented.
At Finsphere, we have a simple, safe and secure solution that can help thwart CNP fraud similar to the way Visa’s Mobile Location Confirmation (MLC) enhances card issuers’ mobile-banking apps to combat card present fraud. Our patented Mobile Proximity Correlation uses the proximity of a user’s mobile phone to where a CNP transaction originates – such as the IP address of the user’s browser or other location-identifying attributes — as a key factor toward authenticating a legitimate activity.
Again, it’s using one of our strong points – a combination of technologies and analytic capabilities – to authenticate identities and separate attempted fraudulent transactions from those that are on the up and up. CNP fraud is often attempted using stolen credit or debit card data. Given the continuing rash of high-profile computer system hacks of retailers such as Target, Staples, Home Depot and others, Finsphere’s technology is well positioned to help out the cardholder to make online transactions simpler, safer and securer, whether in the pre- or post-EMV world.