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HAPPY TAPPING: WHY IT’S TIME FOR A MORE SECURE SOLUTION TO CONTACTLESS FRAUD

Since their launch in 2007, contactless cards have revolutionised the payment industry. Contactless payments overtook chip-and-PIN as of July 2018, with more than 52% of the UK’s monthly card transactions conducted through a contactless card. Thanks to the ease of tap-and-pay transactions, consumers now expect to pay with contactless not only at big retailers, but also from market stall holders and, now, even Big Issue vendors.

But, despite the convenience that contactless payments offer, consumers are still fearful of the threat of fraud caused by tap-to-go payment cards. In fact, research from IDEX Biometrics ASA has revealed that more than three-in-five (63%) UK consumers are worried that their contactless payment cards could be used fraudulently.

While nearly half (48%) of consumers believe contactless cards have made their in-store shopping experience more convenient, nearly three-in-five (57%) are concerned that contactless transactions expose them to theft and fraud. Worryingly, more than half of consumers (54%) also fear that criminals could scan a contactless card in their pocket, making them a victim of theft without their knowledge.

 

Strengthening authentication

In a bid to reduce consumers fears and counter fraud in payment transactions, the European Banking Authority introduced the Second Payment Services Directive (PSD2) on 14th September. This new law, aimed at enhancing online and payment security, requires banks and retailers to implement new Strong Customer Authentication (SCA) methods for online and in-customer card payments. For consumers, this means providing at least two factors of authentication for transactions. These are factors such as a PIN or a one-time passcode, or biometric data, combined with the possession of a payment card—even for contactless payments.

The introduction of contactless payments was supposed to make shopping easy. But while the roll out of new SCA factors aims to combat fraud concerns, these additional authentication methods are actually frustrating for shoppers.

Our research found that two-in-five (44%) 25-34-year-olds believe that the current £30 limit for contactless payments should be removed altogether and nearly one-third (27%) of adults overall agree. PINs prove just as much of an inconvenience, as more than a third (35%) of 18-34-year-olds will make sure their transaction is under £30 so they can simply tap and pay.

 

A better solution

However, with more than a quarter (26%) of those with a bank account concerned about the security of PINs to keep their money safe, not even passcodes are strong enough for consumers. Evidently, we need a better solution to prevent contactless card fraud, alleviate consumer fears and encourage worldwide adoption. Our data shows that UK consumers are ready to welcome a new form of payment card, one that combines both convenience and enhanced security.

Notably, nearly half (49%) of consumers state they would actually feel more secure if they were able to use their fingerprint and PIN to authenticate transactions via their payment card. This highlights that consumers would be much more confident about contactless payments if their bank card was protected by biometric authentication, such as a fingerprint scan, and not just card possession or a PIN as a verification method.

Consumers want more convenience than PINs provide. More than a third (35%) of UK consumers already expect fingerprint biometric authentication to be rolled out for transactions by 2020, so banks and card manufacturers need to step up now to adopt biometric technology and revolutionise payment cards for the future of payments.

 

Secure storage

With the addition of fingerprint biometric authentication, payment cards can’t be scanned from your pocket or used without your knowledge, as the registered fingerprint must be on the card sensor to verify a transaction. This ensures a stronger level of security for contactless payments and reassurance for consumers.

Security of their data is also an important concern for UK consumers. More than two-in-five (44%) consumers state that if banks can assure them that their fingerprint biometric data would be safe, unshared and not held anywhere, they would be happy to use biometric authentication as a replacement to their PIN. Crucially, on fingerprint biometric cards, at enrolment, the fingerprint image is instantly processed into a data template. This is then stored securely in the card and not in a central database, meaning the customer’s details never leave the card.

Despite consumer fraud concerns, contactless transactions in the UK continue to grow every day. Therefore, the financial industry must do more than just introduce multiple new authentication factors to address consumers’ growing concerns about card theft and contactless fraud. In our have-it-now era, consumers want a transaction process that is fast, frequent and free from hold ups. While PINs and payment limits are currently important anti-fraud measures, shoppers are already irritated by these extra steps in the payment process. They need an easier, more secure solution.

Fingerprint biometric payment cards offer this solution, providing both stronger security and payment convenience that doesn’t hinder the contactless process. As the fingerprint sensor on the payment card is placed in the natural position for holding the card, a contactless transaction can be carried out without any additional steps for the user.

With the support of biometric technology, fingerprint authentication payment cards can help overcome fraud from contactless payments and enhance our shopping experience. If the financial industry act now to adopt fingerprint biometric payment cards, contactless fraud, PINs and payment limits will soon become a thing of the past.

 

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SONY BANK SECURES AND ENHANCES MOBILE BANKING WITH ONESPAN’S MOBILE SECURITY SUITE

SONY BANK

App shielding, biometric authentication and additional technologies secure and improve the customer experience for Sony Bank’s mobile banking app

 

OneSpan™ (NASDAQ: OSPN), the global leader in securing remote banking transactions, today announced that Sony Bank is protecting its mobile banking transactions with OneSpan’s Mobile Security Suite. OneSpan helps the bank secure and improve the customer experience by detecting and preventing mobile threats in the background, while integrating convenient features like facial recognition and fingerprint biometrics.

 

Mobile banking adoption continues to increase and the frequency of mobile attacks like malware and trojans continue to rise. Sony Bank was able to address both customer experience and security by launching its banking app and securing it using OneSpan’s suite of mobile SDKs. Mobile Security Suite integrates application security, biometric authentication and Application Shielding, which detects and mitigates fraudulent activities and helps ensure the integrity and protection of apps and data.

 

“Addressing security and customer convenience was key for us, and with OneSpan’s solutions we are able to achieve both,” said Sony Bank Senior Manager of the Systems Planning Department, Shuichiro Sumimoto. “The technology comprehensively protects the device and the application, while providing an easy way for our customers to complete mobile transactions.”

 

“OneSpan’s Trusted Identity solutions enable banks to simultaneously fight an ever-increasing number of threats while ensuring a seamless and easy customer experience,” said OneSpan CEO, Scott Clements. “With Gartner predicting that by 2022, at least 50% of successful attacks against mobile apps could have been prevented using in-app protection,[i] Sony Bank is taking the right steps to future-proof its business.”

 

While mobile threats are on the rise, so too are regulations designed to make banking more secure and transparent. In particular, the global move toward Open Banking has triggered regional regulations such as the Amended Banking Act of 2017 or the Second Payment Services Directive (PSD2) in Europe. Using OneSpan’s technology, Sony Bank can address today’s PSD2 requirements with the aim of using the technology to address potential future regulations.

 

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KOREA’S KB BANK USES TRUSTONIC IN-APP PROTECTION TO ENHANCE MOBILE BANKING EXPERIENCE

MOBILE BANKING

Using Trustonic Application Protection enables KB Bank to dramatically improve the authentication experience for users of its mobile banking app and allow secure high value transactions

 

Mobile cybersecurity leader, Trustonic, today announces the successful implementation by KB Kookmin Bank (KB Bank) of Trustonic Application Protection (TAP™) to enable a simpler authentication experience for users of its KB Star Banking app. By combining TAP with its new digital authentication certificates, the bank is dramatically simplifying customers’ access to banking services and enabling them to authenticate higher value transfers in-app, without the need for cumbersome user authentication practices like security tokens.

The largest Korean bank by number of mobile users, KB Bank provides online and mobile banking services to over 10 million customers. Trustonic’s mobile application protection is enabling the bank to provide faster, simpler and more secure digital banking services by isolating authentication certificates in the hardware security of today’s smartphones. Since launching in summer 2019, the app has acquired 3 million active users, and adoption among KB Bank customers continues to grow rapidly.

Mr. Han, Senior Executive Vice President, Kookmin Bank commented: “In Korea, users need to install authentication certificates to use mobile banking services. This can be a complex and time-consuming process that often requires revalidation and multiple passwords. With our long-standing partner Trustonic, we are able to vastly improve the in-app user experience and allow our users to authorize much higher value transactions. Some security solutions make you choose between security, user experience and performance but with TAP there’s no compromise.”

 

Enhancing user experience & enabling high-value transactions with advanced security

Historically, public certificates need to be regularly renewed by the app user, which can be frustrating and time consuming. Now, because the new KB Mobile Certificates have the advanced in-app protection provided by TAP, they do not need to be renewed unless revoked by the customer or unused for one year. This significantly simplifies and enhances the user experience.

High-value in-app payments are now possible because of this advanced protection. KB Bank customers can transfer up to 2 million won (approx. $1,700 US) using their account password, and up to 50 million won (approx. $41,000 US) with a password and six-digit PIN. Amounts between 50 million won and 500 million won (approx. $413,000 US) can be verified by entering their password and PIN before receiving an additional authentication code via an automated phone call.

 

Improving in-app functionality through trust

The TAP in-app protection platform protects mobile applications by securing sensitive code, data and processes in a highly protected environment. The environment dynamically upgrades over the course of an app’s lifecycle to take advantage of the most advanced hardware and software security technologies available on smartphones. Banking, payment, acceptance and fintech app developers benefit as they can use the TAP SDK to build secure next-generation experiences.

Dion Price, CEO of Trustonic, says: “Korea’s certificate-based authentication infrastructure has historically limited the user experience for mobile banking apps. By making its banking app more seamless and secure with Trustonic’s unique combination of hardware and software in-app protection, KB Bank has vastly improved the user experience. This is a perfect example of how advanced security can enrich apps for end users, which is why TAP is being adopted to protect financial services across payments, banking, fintech and mPOS.”

For more information about how TAP is enhancing both security and user experiences, visit the Trustonic website.

 

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