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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: e-Commerce Authorization Data: Patching the Patchwork
3-D Secure Aids New Data Consortium for Authentication & Fraud:
- 3-D Secure is being rolled out by the global card networks so that additional data can be passed from the merchant to the card issuer.
- Information such as device ID, biometrics, email, frequency, location, screen colors, IP address, language and more are now transmitted from merchant to card issuer.
- The most fertile area for consortium data among fraud platforms lie in multi-site device info, behavior, and purchasing history.
- Contributing data to a consortium for the common good runs counter to competitive mindset, but the ability to combat fraud is persuasive to merchants.
- As authentication companies build out their consortium data, Mercator expects interesting competition between vertically oriented consortiums and broad horizontal consortiums.
- Specialization by country/market and the opportunities for micro-specialization among vendors are promising.
About Report
To spin fraud detection gold from transaction data straw, you need lots of straw.
The e-commerce checkout and payment process generates masses of data with fraud detection potential for the merchant. Big data and AI-enabled analytics make instantaneous decisioning possible, but consortium-level transaction data is only partially fulfilled today. Fraud platform providers are beginning to seriously exploit the power of previously inaccessible data through customer data consortiums.
