The next phases of the growth of on-line and mobile commerce will depend on the degree of security and the customer experience that can be delivered to the user.
Smartphones, although powerful and with lots of functionality, are inherently less sophisticated than PCs and therefore easier for fraudsters to exploit, through infection with malware, phishing, man in the middle scams and other innovative ways of identity theft.
At the same time, higher levels of security need to be delivered without significantly degrading the customer experience. Research shows that too complicated an authentication or checkout process results in a significant number of users failing to complete the transaction.
ValidSoft is now a wholly owned subsidiary of the US telco software company, Elephant Talk, and is a leading provider of solutions to counter electronic fraud across multiple channels, building “SMART”, a Secure Mobile Architecture for Real-Time Transactions. The company has developed a 5-factor solution, which by adding voice bio-metrics and incorporating device location, can provide much higher levels of authentication and security without damaging the customer experience significantly.
One example of ValidSoft’s work is in the development of a solution to the problem of SIM Card swap, where a fraudster will impersonate the user in a (targeted) “spear” phishing attack and then capture a one-time password sent by SMS onto a fraudulently obtained SIM card. Here ValidSoft is working with Santander UK and its partner Adeptra (now part of Fico, the US analytics company). ValidSoft’s Voice biometrics are currently being tested as part of the payments strategy of a large Central American bank.
ValidSoft aims to build a capability that can be integrated easily into the next generation of mobile and on-line commerce propositions. This will take time and patience, but the company offers an innovative and attractive approach to this vital area.