Security Specialist Pings Mobile Towers to Validate Card Transactions
A London-based online security specialist is now testing a new way of verifying card transactions that its CEO said will turn the problem of false positives "on its head."
ValidSoft already provides a range of multifactor and transaction verification solutions to banks and cooperative financial institutions such as the Cumberland Building Society, a $2.2 billion British mutual organization owned by its accountholders.
"There are a half-dozen risk engine providers in the world geared to examine transactions this way: Say, Pat Carroll goes to a local petrol station that he normally goes to, well, that's well within the normal parameters. But if I jump on a plane and arrive in Nebraska and put my card in an ATM, it will show up as a potential anomaly because Pat Carroll has never been in Nebraska before," he said. "The problem up to now has been that there is no way of dealing with the huge card fraud problem other than with pattern and historic analysis."
ValidSoft said its key differentiator is its ability to sharply lessen the occurrence of false positives caused by that method, which it claims costs financial institutions up to $100 billion in the United States each year alone, based on an estimated $10 cost per case for a fraud unit to call the cardholder to verify the transaction.