PARTNER NEWS: Rambus has unveiled Payment Account Tokenization, a new solution that increases the security of direct credit, direct debit and person-to-person (P2P) payments services by replacing account numbers with unique tokens... More
Biometric ATMs extend banking services — IT-Online — “The TouchPoint validates a customer’s identity by scanning a fingerprint placed on the biometric reader and it can detect false fingerprints to prevent fraud. The identity of the customer is then verified with the Department of Home Affairs to ensure the self-service account opening complies with the relevant laws.”
SEC charges fintech company founder with scheme to defraud investors and misappropriate funds — US Securities and Exchange Commission — “The Securities and Exchange Commission has charged Michael Liberty, the founder of the fintech startup now known as Mozido Inc, with a scheme to trick hundreds of investors into investing in his shell companies instead of Mozido. Liberty and his accomplices then allegedly stole most of the more than US$48m raised to fund a lavish lifestyle that included private jet flights, multi-million dollar residences, expensive cars, and movie production ventures.”
Secret Service warns of chip card scheme — Krebs On Security — “The US Secret Service is warning financial institutions about a new scam involving the temporary theft of chip-based debit cards issued to large corporations. In this scheme, the fraudsters intercept new debit cards in the mail and replace the chips on the cards with chips from old cards. When the unsuspecting business receives and activates the modified card, thieves can start draining funds from the account.”
One in five organizations has experienced payments data theft over the past 12 months — ACI Worldwide — “36% of organizations believe they are at a greater risk of data breach than a year ago. 44% agreed with the view that: My company would not invest in fraud solutions that add friction to the customer experience.”
Chinese market targeted by scammers who set up fake QR codes to divert payments — South China Morning Post — “A food market in China has been targeted by scammers who used fake QR codes to divert mobile payments into their own account… Three men have been arrested on suspicion of printing out small pieces of paper with the QR codes on them and then sticking them over 60 codes used by traders in Nanjing… The three unemployed men — who were only identified by their surnames Zhao, Zhu and Zhang — reportedly told police they had been inspired by a friend who had made money this way.”
Allianz and Visa launch mobile payment and loyalty app — Allianz — “The mobile payment and loyalty app is the first of its kind in the insurance industry and enables customers to make fast, safe and easy payments with their mobile device online and in stores… Allianz Prime users also benefit from an attractive loyalty program, a smart spend tracker to simplify money management as well as Allianz Partners’ Digital Payments Protection… The Allianz Digital Payments Protection provides coverage against fraud, safeguards and supports customers in case of defective or damaged online purchases and provides financial compensation in case of a loss.”
The increasing diversity of devices, services and players in the mobile payments ecosystem has led to the need for standards and certification to manage fragmentation, prevent fraud and ensure consistent user experience, GlobalPlatform’s Gil Bernabeu explains in a new paper now available to download from the NFC World Knowledge Centre... More
Quick take: Mobile payment fraud rises in China, report finds — Caixin — “A China UnionPay survey of 105,000 people found that 60% had been exposed to some kind of mobile payment security threat, including information leaks, fraud or malicious attacks… Nearly 30% of users reporting mobile payment fraud said QR codes were involved, up from 15% last year.”
China’s central bank to standardize QR code payment — Xinhua — “The People’s Bank of China (PBOC) announced plans Wednesday to regulate QR code payment to contain risks arising from the popular service. Payment institutions must obtain proper permits to offer barcode-based payment services, according to a document released by the PBOC. Both banks and non-banking payment institutions must channel cross-bank transactions involving barcodes through the clearing system of the PBOC or other legal clearing houses… The standards will be put into trial use from April.”
Counterfeit fraud at US chip-enabled merchants down 66% — Visa — “With EMV chip transactions continuing to grow in the US, counterfeit fraud volume decreased 66% at chip-enabled merchants in June 2017 compared to June 2015. US financial institutions have issued 462m chip cards to consumers, and 2.5m, or 55% of US storefronts, accept chip cards.”
Biometrics centrepiece of new Visa security roadmap — ZDNet — “The financial services giant has launched its 2020 and beyond roadmap first in Australia, focusing initially on biometrics for payment authorisation, ‘3-D Secure’ fraud detection, and pushing the use of tokenisation.”
US Bank adds opt-in location services to mobile app, making life on the go more flexible during the holidays — US Bank — “US Bank has added location services to the US Bank Mobile App, offering US Bank Visa credit and debit card customers technology that uses their phones’ location to help verify whether their mobile devices and credit or debit card are in the same location. By using the mobile device’s location in the authorization decision, US Bank can help give consumers the confidence that their transactions will be approved, minimizing disruptions and further reducing the risk of fraud.”
FTC probes Equifax, top Democrat likens it to Enron — Reuters — “The US Federal Trade Commission said on Thursday it was investigating Equifax Inc’s massive data breach, and a top Democrat suggested the credit monitoring company’s corporate leaders might need to resign… Senate Democratic leader Chuck Schumer compared Equifax to Enron, the US energy company that filed for bankruptcy in 2001 after revelations of a widespread accounting fraud.”
Chip-enabled merchants up; Counterfeit fraud down — Visa — “As of the end of June 2017, 2.3m US merchant locations, 50% of storefronts, are chip enabled. And with more than 449m Visa chip cards in the country, representing 62% of Visa cards, counterfeit fraud has continued to decline — 58% at chip-enabled merchants in March 2017 when compared to March 2016.”
The Federal Reserve has released details of nine new tactics it plans to employ to improve the US payments system across five key areas — speed, security, efficiency, international payments, and collaboration... More
Police chief says safer to keep contactless cap at £30 — Evening Standard — “A poll last month found that more than half of retailers wanted the contactless limit increased… About 2.7p (US$0.04) in every £100 (US$129.70) that was spent was lost to contactless fraud last year.”
Visa moves to kill PINs by pushing Aussie banks towards biometric authentication — The Australian Financial Review — “A new Visa security roadmap outlines a four-year process for Australian banks to adopt new standards for e-commerce transactions, designed to streamline the purchasing process and reduce fraud, while implementing new information-sharing practices and tokenization technology.”
Heat become first NBA team with mobile-only entry — ESPN — “The Miami Heat announced Thursday that fans who attend home games this upcoming season will only be able to get through the gate with tickets on their phones… Teams are gradually shifting to mobile tickets, they say, in part to reduce fraud, but also to get valuable information about the fan who actually winds up in a specific seat.”
“Combined, Apple Pay, Android Pay and Samsung Pay account for only about one quarter of 1% of US debit transactions,” the annual Debit Issuer Study from debit and ATM network Pulse has found, while the country’s move to EMV chip cards has cut debit card fraud loss rates but “fraud continues to challenge issuers.”... More