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Mobile Payments and Restricted Access

One of the major security concerns related to mobile payments is that apps are often left in
the “on” position by consumers. This means that even when an app is not open and active,
consumers choose to automatically log-in with usernames and passwords to be able to
quickly access information and make payments.

Problems instantly arise when a phone is lost, stolen or misplaced because the finder has
the ability to begin purchasing items without restriction.

Also, fraudsters have been able to exploit phony Wi-Fi networks and other methods that
monitor consumers’ online activity in order to steal valuable personal information. However,
with the proper security checks in place, businesses that accept mobile payments from
customers can ensure that the customer is who they say they are and that their identity is
protected from misuse.

Methods to Eliminate Concerns

While companies may focus on fraud prevention for customer-not-present transactions over
the Internet, it is also necessary to have a system in place to stop fraudulent activity when it
comes to mobile payments.

End-to-end identity verification platforms that go a step further and incorporate a robust fraud
prevention solution give companies the tools they need to ensure the customer is legitimate
while securely processing more customer transactions without unnecessary friction no
matter how they pay for their goods/services.

As identity theft become more and more pervasive, pure identity verification is no longer
enough. It becomes crucial for businesses to gain more insight into what attributes make up
a customer identity – so they can quickly pinpoint suspicious behavior and manage risk in
real-time. In particular, it is very important to be able to dynamically flag various indicators of
fraud such on identity, activity, location and device-based fraud and then quickly and easily
make decisions on how transactions will proceed.

Whether someone is ordering from his or her phone, online or through a call center, security
measures can be put in place to authenticate customers before a purchase is made.
Educating customers about the security features of phones, such as passcodes, and
requiring proof of identity adds protection to the process in a day and age where consumers
are concerned about the safety of private information.

About IDology, Inc.

IDology, Inc. provides real-time technology solutions that verify an individual’s identity and
age for anyone conducting business in a consumer-not-present environment to help drive
revenue, decrease costs, prevent fraud and meet compliance regulations. Founded in 2003,
IDology offers a solution-driven approach to identity verification and fraud prevention that
ultimately helps increase customer acquisition and improve customer experience. IDology

22 Cyber Warnings E-Magazine – July 2014 Edition
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