The Paypers launches The Fraud Prevention and Online Authentication Report 2019/2020

2019 has brought lots of changes in the fraud prevention and authentication space, which opened the opportunity for The Paypers to seize the moment and launch the 8^th edition of its dedicated report.

This must-read overview offers some of the most important challenges, innovations, and perspectives in the payments ecosystem. As every industry player, merchant, or service provider must stay alert in the quest to offer their clients the best customer experience, while complying with regulations and managing risks in order to block fraudulent activities, this year, through our report, we decided to draw an accurate picture of the landscape in order to educate our readership regarding both the risks and the measures to be taken in case of fraud.

Without doubt, fraudsters are becoming increasingly sophisticated and new types of fraud are developing rapidly (e.g. spam abuse, bot attacks, APP fraud, account opening fraud), however, with the new security directives that came into play in September, it is interesting to see how the latest developments in fraud management help in the fight against scams, and what best practices in online authentication are most optimal. 

For all these, in the first part of the report we have asked thought leaders to share their expertise regarding the following aspects:

How fraud in banking and commerce is addressed – Banks are facing regulatory challenges; the question is how do they find the best solutions possible to capture fake digital identities and how do they reduce or prevent risks in account opening (Accertify, Aite Group, Buguroo, Emerging Payment Association, EVERY, Risk42). In the ecommerce space, the issue of chargebacks remains a priority, while new verticals, such as gaming, must up their game to combat fraud (Ethoca, Kount, FIDO Alliance, Forter, Loyalty Fraud Prevention Association, Wargaming).

How online authentication is impacted by the PSD2 – Strong Customer Authentication is definitely something that must be taken into account considering the level of sophistication the fraudsters have reached nowadays. Whereas some are looking to observe where fraud is heading to after PSD2, others are seeking ways to explore frictionless authentication via biometrics and tokenization (Australian Payments Network, Behaviosec, CyberSource, G+D Mobile Security, Juniper Research, Sift, Signifyd, U.S. Payments Forum).

Companies are continuing to use artificial intelligence and machine learning improved technologies so that they would stay ahead of fraudsters, while also ‘unboxing’ the black-box for you (Feedzai, Simility).

Since bad bot attacks are increasingly rising, companies are staying alert on the intent to combat and fight any types of fraudulent activities, such as content scaping attacks and credential stuffing (Arkose labs, Kasada).

To be more efficient in their quest, companies are seeing how data intelligence can be used as a smart method to address fraud prevention. Data privacy and identity verification are major aspects that need to be taken into account, especially considering that the online space is constantly at risk (Acuant, Emailage, IBM Research, Money20/20, Nethone, STRATGranat).  

Besides the editorials, the report displays a comprehensive section of company profiles with details regarding the key players’ unique selling points, their business partners, technology, and many others. We have also featured a new approach towards the industry mapping of core solutions. This year we have looked at companies’ most relevant new capabilities – proprietary and via third parties –, as well as we have asked them to explain three of the most important processes in the fight against fraud: what data do they gather, how do they analyse the data, and how is the decisioning process. 

The Fraud Prevention and Online Authentication Report 2019/2020 is endorsed by our partners from MRC, a merchant-led trade association focused on electronic commerce risk and payment strategies, and Marketplace Risk, a leading organisation leaning towards risk management and legal strategy for the marketplace startup industry. 

About The Paypers: The Paypers is the Netherlands-based leading independent source of news and intelligence for professionals in the global payment community. Our products are aimed at merchants, payment services providers, processors, financial institutions, start-ups, technology vendors, and payment professionals and have a special focus on all major trends and developments in payments-related industries including online and mobile payments, online/mobile banking, cards, cross-border ecommerce, e-invoicing and SEPA. We are also keen on keeping our readership informed with regards to online fraud prevention innovations and the most significant trends in the e-identity space.