Mastercard has unveiled improvements to its Identity Check program, aimed at enhancing security for South African cardholders during online transactions. The upgraded system incorporates the 3-D Secure 2.0 protocol, adding an additional layer of protection against fraud, especially as shopping activities ramp up during Black Friday and the holiday season.
This initiative aims to counter rising fraud, with South African card not present (CNP) fraud accounting for 76.9 percent of gross fraud losses in 2022.
The enhanced Identity Check integrates several technologies, including artificial intelligence for risk-based authentication and biometrics like facial recognition and fingerprint scanning. The system will prioritize biometric authentication for high-risk transactions, reducing reliance on traditional passwords and multi-factor methods like SMS codes, which can slow down the checkout process. For low-risk transactions, frictionless authentication aims to ensure a more seamless experience.
Authentication and fraud prevention services provider Entersekt is working alongside Mastercard to help ensure compliance with regulations and provide greater control over transaction risk profiles.
“E-commerce is showing good growth in South Africa, but many consumers remain wary of using their cards online or become annoyed by high-friction checkout experiences, slowing the growth potential of online commerce,” said Andries Maritz, Principal Product Manager at Entersekt. “The latest Mastercard initiative focuses on performance enhancements by integrating cutting-edge technologies like AI for risk-based authentication as well as biometrics. Working with authentication specialists, the aim is to help issuers create a more seamless and secure experience for cardholders.”
Mastercard reports that biometric verification has led to a 32 percent reduction in fraud compared to SMS-based one-time PINs. The phased approach will also support issuers in providing biometric-enabled devices for secure and efficient authentication.
The enhanced Identity Check program is reportedly being rolled out globally across over 70 countries, including those in Europe, the Middle East, and Africa, though South Africa appears to be at the front of the line.
Source: IT News Africa
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October 1, 2024 – by Tony Bitzionis
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