Category Archives: Fraud

Feb 24 2016
Leave a comment
Apple, Apple Pay, EMV, Experian, Fraud, Mastercard, Mobile Commerce, Mobile Payments, Networks, NFC, Retail, Tokenization

February Payments Newsletter

From my February newsletter, so you could see what it’s normally about: my posts, thoughts about other posts I have read, my take on interesting industry bits, and other perspectives. If anyone wants to be included in the distribution – email me at cherian(.)abraham(at)experian(.)com.

What it is -> A quick read and meant to be useful.
What it is not -> Not meant to make you buy stuff, not meant to use your email for other things.

Tim Cook has a cogent explanation of why building a backdoor (in this case, a firmware that degrades the device security to allow endless pin entry attempts by the law enforcement to gain access to the device, without triggering a data wipe) will not be in the public interest. Any attempt to build a backdoor will be an irreversible step towards weakened system security not just for the iOS ecosystem – but for banking and financial systems that has come to rely on TouchID and other security subsystems inherent in iOS devices. Unintentionally or not, we are at risk of poisoning the well. Link Continue reading →

Dec 10 2015
Leave a comment
Apple, Biometrics, Fraud, Mobile Commerce, Mobile Payments, NFC, Payments, Security, Tokenization, Touch ID

Biometrics: Untangling the debate

I was invited recently to moderate a panel on Biometrics at the Atlanta Fed with MasterCard, Morpho, Daon, Pindrop Security and NIST, kicking off a One day summit to discuss the current technology environment in US around authentication. There will be a follow-on conference summary made available to the public by the Fed Retail Payments Risk Forum – so this serves as opinion – shaped by my own research and writing on the topic, as well as ongoing debates with organizations who are looking to broaden their use of biometrics. Continue reading →

Tagged , , , , , , , ,
Nov 05 2015
Leave a comment
Apple, Apple Pay, EMV, Fraud, Mastercard, MCX, Mobile Commerce, Mobile Payments, Networks, NFC, Payments, Security, Tokenization, Touch ID, Visa

Payments and Identity in a Fog of devices

This week, Chase Partnership ends up a Hail Mary pass for MCX, and the 94 Million preloaded cards constitute the single most benefit. Elsewhere, Apple Pay looks to Amex as it rolls out to Canada and Australia – a partner who has sufficient margin in interchange to stomach a toll fee, but smaller market share in comparison. Finally, the platform moves from Mastercard to extend MDES and Express to the Internet of Things is interesting less because of payments, and more when you view it against the backdrop of name-centric identities giving away to algorithmically derived ones. This post is part of my November Newsletter. You should email me at cherian(dot)abraham(-at-)experian(.dot.)com to be added Continue reading →

Tagged , , , , , , , , , ,
Sep 25 2015
1 Comment
Apple, Apple Pay, AT&T, Biometrics, Carriers, Credit Card Breach, EMV, Experian, Fraud, Google Wallet, HCE, Mastercard, MCX, Mobile Commerce, Mobile Payments, Networks, NFC, Payments, Paypal, POS, Retail, Security, Tokenization, Touch ID, Verizon, Visa, Walmart

Payments and Commerce Newsletter – September

This is a portion of my biweekly newsletter that I started earlier in 2015 to a small group of people that I communicate with often – a mix of Founders, Bank and Retail Execs, VCs, and others who find their work intersect with mobile and commerce. The last one to go out is pasted below, so you could see what it’s normally about: my posts, thoughts about other posts I have read, my take on interesting industry bits, and other perspectives. If anyone wants to be included in the distribution – email me at cherian(.)abraham(at)experian(.)com.

What it is -> A quick read and meant to be useful.
What it is not -> Not meant to make you buy stuff, not meant to use your email for other things. Continue reading →

Aug 17 2015
4 Comments
Amex, Apple, Apple Pay, Citi, Coin, Disruption, EMV, Fraud, Google Wallet, HCE, Host Card Emulation, ISIS, Mastercard, MCX, Mobile Commerce, Mobile Payments, Networks, NFC, Payments, Paypal, Tokenization, Visa

Key debates in payments tokenization – Cost & Control

In Payments, Tokenization has surfaced two key points of debate for financial institutions. The first has to do with bank partnerships with technology providers like Apple, Google, Samsung et al – and how these partnerships need to be equalized around the topic of cost and control. Though the fear of disintermediation isn’t new, concerns about costs, data sharing and customer privacy has received a disproportionate share of this internal debate. Following is a brief perspective on how this is further shaped within banks and the downstream impact to those who intend to wrap them. Continue reading →

Jul 05 2015
2 Comments
Amazon, Amex, Apple, Apple Pay, Card Emulation, Disruption, EMV, Fraud, HCE, Host Card Emulation, ISIS, Mastercard, Mobile Commerce, Mobile Payments, Networks, NFC, Payments, Paypal, POS, Retail, Security, Strategy, Tokenization, Visa, Walmart

Dumb pipes and Wide moats: Networks and Tokens

For Apple Pay, tokenization is the process by which card information is protected and subsequently shielded from the merchant and other parties in the transaction flow – till it reaches an entity equipped to reverse the translation and submit the authorization for bank approval. With AP – this role is entirely owned by the card schemes, even though the specification put forth by EMVCo places no such stipulations and allows third party “Token Service Providers” to exist. Apple is said to have welcomed “non-card scheme TSP’s” to operate within Apple Pay for a couple of reasons – the ability to support non-payment tokens as well as a hedge against putting all its eggs in one basket. For network TSPs like V and MA – tokenization represents a real advantage that dis-incentivizes disruption, while opening their rails to far more potential than just payments. Continue reading →

Tagged , , , , , , , , , , , , , , , , , ,
Jun 08 2015
Leave a comment
Apple, Apple Pay, EMV, Fraud, Google Wallet, HCE, Host Card Emulation, MCX, Mobile Commerce, Mobile Payments, NFC, Payments, Paypal, POS, Retail, Touch ID, Walmart

Digging a wider moat: Apple shifts to loyalty

Wallet

Apple eschewed banks for a retailer focus onstage at the WWDC when it spoke to payments. I sense this is an intentional shift – now that stateside, you have support from all four networks and all the major issuers – Apple understands that it needs to shift the focus on signing up more merchants, and everything we heard today drove home that note. That includes Square’s support for NFC, as well as the announcements around Kohls, JCPenney and BJ’s. MasterCard’s MDES (opposite Visa’s VTS) is the tokenization service that has enabled these partnerships – specifically through MA’s partners such as Synchrony – their press release linked – (former GE Capital) which brought on JCPenney, Alliance Data which brought on BJ’s, and CapitalOne which enabled Kohls. Continue reading →

Tagged , , , , , , , , , , , , , , ,
Feb 08 2015
1 Comment
41st Parameter, Apple, Apple Pay, Credit Card Breach, EMV, Fraud, Google Wallet, HCE, Host Card Emulation, ISIS, MCX, Mobile Commerce, Mobile Payments, NFC, Payments

Apple Pay : What happens when it hits 100%

lucy

What happens when Apple Pay hits 100%? I am not talking about 100% merchant acceptance, as much of that is driven by an alignment of merchant interests – cost reduction, potential for increased sales and marketing etc. Instead, I am talking about coverage – the share of total available cards across US banks that can be provisioned into Apple Pay. Today, partly due to the diligence of networks in signing up banks for AP, cards that are responsible for 90% of total retail payment volume are now ready to be provisioned. Separately, I am told 90% of issuer portfolios will be tokenized by end of 2015. (Forget/Ignore Private Label and Discover, for the moment) Continue reading →

Tagged , , , , , , , , , , ,
Jan 05 2015
9 Comments
41st Parameter, Apple, Apple Pay, Biometrics, Credit Card Breach, EMV, Fraud, Google Wallet, Loop, MCX, Mobile Commerce, Mobile Payments, NFC, Payments, Paypal, POS, Retail, Security, Touch ID, Walmart

Smart Mouse Traps and Lazy Mice

“Building a better mousetrap merely results in smarter mice” – Charles Darwin

Credit card issuers in general have a good handle on fraud. They manage it under 10bps (i.e. losses of $0.10 or less per $100 of transactions) on transactions made with a dumb plastic card lacking any additional context. So Issuers wishing for Apple Pay fraud to fall between 2-3bps was not totally out of character, considering the protections in place by Apple and Networks to keep fraud away – including Issuer support during provisioning, NFC, Tokenization, a tamper proof Secure Element and TouchID. But fraud seems to have followed a different trajectory here. About a month post-launch, it seems like fraud has come to Apple Pay. (in one case – as high as 600bps for an issuer that I cannot name). Though what follows was written in the context of Apple Pay, much of it translates to any other competitor – irrespective of origin, scale, intent, or patron saint. Continue reading →

Tagged , , , , , , , ,
Oct 12 2014
6 Comments
Apple, Apple Pay, Biometrics, Card Emulation, Carriers, Coin, EMV, Fraud, Google Wallet, HCE, Host Card Emulation, ISIS, Loop, MCX, Mobile Commerce, Mobile Payments, NFC, Payments, POS, Retail, Touch ID, Walmart

Apple Pay: First Observations And Closing Thoughts

If rumors hold true, Apple Pay will launch in a week. Five of my last six posts had covered Apple’s likely and actual strategy in payments & commerce, and the rich tapestry of control, convenience, user experience, security and applied cryptography that constitutes as the backdrop. What follows is a summation of my views – with a couple of observations from having seen the Apple Pay payment experience up close. About three years ago – I published a similar commentary on Google Wallet that for kicks, you can find here. I hope what follows is a balanced perspective, as I try to cut through some FUD, provide some commentary on the payment experience, and offer up some predictions that are worth the price you pay to read my blog. Continue reading →

Tagged , , , , , , , , , , , , , ,
← Older posts