In a previous article, we introduced the fact that card fraud is a massive $35billion problem. It has the potential to de-rail the growing trend of online payments and undermine the trust of consumers worldwide. Lexis Nexis found that it cost merchants $2.40 to rectify every dollar lost to fraud.
All these data points to the urgency for advanced solutions to combat the scrounge of fraud before the world of e-Commerce and online payment becomes commercially non-viable. After introducing Cash Shield, we are introducing another 3 innovative solutions to combat the issue of fraud.
They have been nominated for the Florin Awards for Fraud Prevention Innovation. They are G2 Web Services, GrabPay and MeRealBiometrics from the United States, Singapore and Hong Kong respectively.
G2 Web Services – Washington
G2 Web Services is based in Washington and currently one of the fastest rising private company. G2 solves the niche fraud category of transaction laundering which is a process where criminals erect bogus website to accept payments for illegal transaction such as drugs, kidnapping and other crimes. The way to solve this problem is to nip it in the bud for financial institutions before they onboard their customers.
Ever since 2004, G2 had been monitoring merchants and have compiled an extensive database of merchants known as G2 Merchant Map. This is part of the G2 Boarding Solution which allows banks to know their customers better and effectively identify suspicious merchants better.
GrabPay – Singapore
GrabPay is a mobile payment solution created by car-hailing service Grab. Grab had just gotten US$750 million of funding and part of it would be used to improve GrabPay. GrabPay would also be used in Indonesian malls under the Lippo Group which is part of its strategy to make GrabPay more integral to the lives of the average consumers in Asia.
From GrabPromo
GrabPay is able to detect fraudulent cards that have a high potential for chargebacks and block them so as not to shake the confidence of drivers when they accept passengers using GrabPay. When GrabPay was first launched in beta, they had half a million of fraudulent transaction in their first month alone. After 1 year of refining their products, they had kept fraud down to a baseline of 0.7% of the Gross Merchandise Value (GMV) which is lower than the industry standards.
MeRealBiometrics – Hong Kong
From: MeRealBiometrics YouTube
MeRealBiometrics differentiates itself from its 2 other Florin award competitors by providing a physical card to read fingerprints to fight against fraud. Therefore, they solve the problem of using forcing customers to use PIN for their payments, remittance services and gaining access to property.
The MeRealBiometrics card don’t retain data unlike the traditional bank cards which means that a stolen card doesn’t affect the users. Only the unique customer’s fingerprints would create an accoustic cyphered one time password to authorize any transactions on your smartphone app, website or any of the world’s 8 billion phone line. China Union Pay has published a standard for it.
Conclusion
Criminals are getting creative in their methods of stealing, impersonating and laundering their ill-gotten proceeds. Therefore, there are companies out there which are innovating solutions to counter these criminal activities.
The Florin awards recognizes these innovative technology companies who stand at the front of the fight against fraud by preventing them from happening in the first place. The extra recognition would allow financial institutions and other parties involved to gain an edge in securing their payments and increase the public’s confidence and acceptance of digital payment.
Vote online for G2 Web Services, GrabPay and MeRealBiometrics for Best Fraud Prevention Innovation at Florin Awards here. Voting will end by 7 October 2016. Participate in the voting and you could stand a chance to win a free delegate pass at the GLOBAL Payment Summit 2016 worth USD 1,395!
Register for Global Payment Summit 2016 in Singapore this October here. Enter code “FNSGPS20” to get 20% discount!
