Payment Security

The Real Story Behind False Declines and How Wibmo Trident FRM Secures Transactions 

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In today’s fast-evolving digital economy, businesses rely heavily on seamless online transactions to drive growth and customer satisfaction. However, false declines — legitimate transactions mistakenly flagged as fraudulent — have become a growing concern. These incidents lead to customer frustration and significant revenue loss. As fraudsters continue to innovate, businesses must deploy advanced security measures that both combat fraud and minimize false declines.  In this blog, we explore the causes and impact of false declines and how Wibmo’s Trident FRM (Fraud Risk Management) system helps businesses reduce these risks while providing secure, frictionless payment experiences.  What Are False Declines?  False declines, also called false positives, occur when valid transactions are incorrectly rejected due to fraud detection systems being overly cautious. These rejections can be triggered by unusual spending patterns, technical errors, or overly strict fraud detection algorithms. While these systems aim to block fraudulent activity, they can sometimes hinder genuine transactions.  In 2023, false declines have been an expensive issue for businesses, costing global eCommerce firms an estimated $81 billion in lost revenue. This highlights the need for more advanced fraud detection systems that balance security with customer convenience.  The Impact on Businesses and Consumers  False declines affect both businesses and consumers alike. For businesses, the immediate loss of revenue from rejected transactions is just the beginning. Customer churn is a serious consequence, as 47% of customers who experience a false decline may not return, leading to long-term revenue loss. Additionally, false declines contribute to operational inefficiencies as businesses deal with disputes and chargebacks, further affecting profitability.  For consumers, having a legitimate transaction rejected can damage trust and loyalty. The frustration caused by a false decline often leads to customers turning to competitors, affecting future engagement.  How Wibmo Trident FRM Reduces False Declines  To address these challenges, Wibmo’s Trident FRM (Fraud Risk Management) provides a sophisticated solution that combines machine learning, real-time data analysis, and behavioural analytics to accurately assess transaction risk.  Key Features of Wibmo Trident FRM:  Trident FRM continuously monitors user behaviour, detecting anomalies and signs of potential fraud. This advanced fraud detection helps block fraudulent transactions while allowing legitimate ones to be processed without interruption.  Unlike traditional fraud detection systems, Wibmo Trident FRM adapts to emerging fraud patterns. It fine-tunes authentication requirements based on transaction risk, ensuring a balance between fraud prevention and customer experience.  Leveraging AI-powered data analytics, Wibmo Trident FRM offers real-time fraud detection, blocking fraudulent transactions as they occur. This ensures that businesses can process legitimate transactions smoothly while preventing unauthorized activities.  Combating Online Fraud  The global rise of eCommerce has seen an increase in online fraud, with $48 billion in eCommerce fraud losses globally in 2023. Businesses must adopt proactive fraud prevention strategies to avoid these significant financial losses. Wibmo Trident FRM provides a robust solution that not only protects businesses but also reduces the frustration caused by false declines.  Best Practices for Fraud Prevention:  Benefits of Wibmo Trident FRM  Wibmo Trident FRM allows businesses to strike the right balance between security and customer experience. By reducing false declines, businesses can protect their revenue and build long-term customer trust and loyalty. Its adaptive approach ensures that customers enjoy a seamless and secure payment journey, even in a high-risk online environment.  Customer Experience Impact:  With fewer interruptions and smoother transactions, Wibmo Trident FRM enhances the overall customer experience, helping businesses maintain customer loyalty while ensuring secure payments.  Conclusion  As online fraud continues to rise, it’s crucial for businesses to adopt advanced fraud management solutions. False declines can cause both financial losses and customer dissatisfaction, making it essential to minimize them through intelligent risk management. Wibmo Trident FRM offers an effective solution that provides real-time, adaptive fraud prevention while ensuring legitimate transactions are processed smoothly. 

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Enhancing Fraud Prevention with Risk-Based Authentication and Method URL

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Preventing fraud while maintaining a seamless user experience is crucial for merchants and issuers alike in the rapidly evolving digital payment landscape. A key way to strengthen fraud prevention is by gathering more device and browser characteristics before authentication. This can be achieved through Risk-Based Authentication (RBA), Browser Fingerprinting, and the use of Method URL as part of the EMV 3DS protocol. Let’s explore how these elements work together to improve security and reduce fraud. The Role of Risk-Based Authentication (RBA) Risk-Based Authentication (RBA) dynamically assesses each transaction’s risk level based on multiple factors, such as device characteristics, location, and user behaviour. Instead of applying a blanket security protocol for all transactions, RBA allows issuers to adjust the level of authentication required based on the perceived risk. This improves fraud detection while minimizing friction for low-risk transactions, thereby creating a better user experience. Browser Fingerprinting: A Core Element of Fraud Detection Browser fingerprinting is a technique used to collect unique information from a user’s browser. This includes data like the device’s operating system, browser version, plugins, IP address, screen resolution, and more. By building a unique profile of the user’s environment, issuers can detect anomalies that may indicate fraud, such as sudden changes in the user’s device or location. However, to leverage this information effectively, additional data must be captured early in the transaction flow, which is where Method URL comes into play. Understanding Method URL Method URL is a critical step of the EMV 3DS protocol. It enables issuers to collect additional browser information during the early stages of the authentication process. This step, which occurs before the authentication request is fully processed, provides vital data that can enhance RBA and fraud prevention measures. How Method URL Works: Benefits of Method URL in Fraud Prevention The use of Method URL offers several benefits for both issuers and merchants in combating fraud: Best Practices for Implementing Method URL To maximize the benefits of Method URL, issuers and merchants should follow these best practices: Integrating Wibmo Protect Wibmo Protect is an advanced fraud prevention solution that seamlessly integrates with RBA, Browser Fingerprinting, and Method URL to provide an additional layer of security. By leveraging Wibmo Protect, issuers and merchants can benefit from: Conclusion Method URL, when integrated properly, significantly improves fraud prevention by enabling issuers to gather vital browser and device characteristics early in the authentication process. By leveraging this data for risk-based authentication, both issuers and merchants can reduce fraud, improve authentication success rates, and provide a better user experience for customers. As fraud prevention becomes more complex, using tools like Method URL and Wibmo Protect is essential for staying ahead of emerging threats and ensuring secure, frictionless transactions.

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The Role of AI and ML in Averting Fraud in Real Time 

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Fraudsters are becoming increasingly sophisticated, leveraging advanced technologies to exploit vulnerabilities. As a leading provider of secure payment solutions, Wibmo understands the critical role that artificial intelligence (AI) and machine learning (ML) play in averting fraud in real-time. This blog explores how AI and ML are transforming fraud prevention, the benefits of these technologies, and how Wibmo’s innovative products are at the forefront of this battle.  The Growing Threat of Fraud  Fraud is a pervasive issue that affects individuals and organizations worldwide. According to a report by Juniper Research, global losses from online payment fraud are expected to exceed $206 billion between 2021 and 2025. This staggering figure underscores the urgent need for effective fraud prevention measures.  How AI and ML Combat Fraud  AI and ML are revolutionizing the way we detect and prevent fraud. These technologies enable systems to analyse vast amounts of data, identify patterns, and make real-time decisions. Here are some keyways AI and ML are used in fraud prevention:  The Benefits of AI and ML in Fraud Prevention  The integration of AI and ML in fraud prevention offers numerous benefits:  Wibmo’s AI and ML Solutions  At Wibmo, we leverage AI and ML to provide cutting-edge fraud prevention solutions. Our products are designed to protect users and organizations from a wide range of fraudulent activities. Here are some of our key offerings:  Real-World Impact of AI and ML in Fraud Prevention  The impact of AI and ML in fraud prevention is evident in various industries. For instance, banks using AI-powered fraud detection systems have reported a 50% reduction in false positives and a 30% increase in fraud detection rates. Similarly, e-commerce platforms have seen a significant decrease in chargebacks and fraudulent transactions by implementing AI and ML solutions.  The Future of AI and ML in Fraud Prevention  As AI and ML technologies continue to advance, their role in fraud prevention will become even more critical. Here are some trends to watch for:  In the fight against fraud, AI and ML are powerful allies. These technologies enable real-time detection and prevention, ensuring that individuals and organizations can stay one step ahead of fraudsters. At Wibmo, we are committed to leveraging AI and ML to provide innovative fraud prevention solutions that protect our users and enhance their security. By staying informed about the latest trends and continuously improving our systems, we can create a safer digital environment for everyone.  By understanding the role of AI and ML in fraud prevention and adopting advanced solutions like those offered by Wibmo, you can significantly reduce the risk of falling victim to fraud. Stay vigilant, stay informed, and stay secure. 

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Securing Digital Transactions During the Festive Season with Wibmo: A Trusted Partner for Seamless and Safe Payments

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The festive season brings an immense surge in online shopping and digital payments. In 2023, Diwali sales alone saw a 49% increase in online transactions, along with a 35% rise in website traffic, making it one of the most lucrative periods for businesses. However, with this rise comes a higher risk of fraud and security breaches. Securing seamless transactions is essential for protecting both revenue and customer trust during this busy season. Wibmo Protect is designed to address these challenges, offering a comprehensive solution that ensures secure and frictionless transactions, even during the peak of the festive rush. How Wibmo Protect Safeguards Festive Transactions 1. Multi-Layered Security with Adaptive AuthenticationWibmo Protect uses dynamic, multi-factor authentication (MFA) to safeguard transactions by adapting security measures based on real-time risk. This reduces the friction for legitimate customers while ensuring robust protection against fraud. Given that the 2023 festive season saw a 72% spike in online sales just two days before Diwali, adaptive authentication is crucial to maintaining a seamless shopping experience without compromising security. 2. Real-Time Fraud Detection & PreventionThe festive season also brings an increase in fraudulent activities. Wibmo Protect’s AI-driven fraud detection engine continuously monitors transactions, instantly identifying suspicious patterns and blocking unauthorized activities in real-time. With eCommerce fraud expected to rise during high-traffic periods like Diwali, proactive fraud detection minimizes losses and protects businesses from financial threats. 3. Seamless Integration with Payment EcosystemsBuilt on industry-standard 3D Secure protocols, Wibmo Protect easily integrates into existing payment ecosystems, ensuring secure transactions without disruption. This is particularly important as conversion rates during the 2023 festive season increased by 22%, emphasizing the need for a frictionless user experience while handling high volumes of transactions. 4. Scalability for High Transaction VolumesThe Indian eCommerce sector recorded significant growth, with over ₹3.75 lakh crore in retail trade during Diwali 2023. Wibmo Protect’s scalable infrastructure is built to handle such high transaction loads, ensuring that businesses can maintain security and efficiency even when managing millions of transactions daily. 5. Compliance with Global and Local RegulationsWibmo Protect adheres to global standards like PCI-DSS and complies with local regulations, such as the RBI’s Additional Factor Authentication (AFA) guidelines. This guarantees that businesses remain secure and compliant, reducing the risk of regulatory fines during peak transaction periods. 6. Advanced Machine Learning for Fraud Pattern RecognitionWibmo Protect leverages machine learning to stay ahead of emerging fraud patterns. During high-traffic periods like the festive season, when fraudulent activities spike, Wibmo Protect’s system identifies and prevents new fraud attempts, ensuring businesses stay protected. Why Businesses Trust Wibmo Protect As businesses gear up for the festive season, securing digital transactions is crucial to providing a seamless shopping experience while protecting against fraud. With Wibmo Protect, businesses can confidently manage high transaction volumes and safeguard their customers from evolving threats during the festive season. Keep your payments secure this festive season with Wibmo Protect, your trusted partner for secure, seamless transactions.

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Transforming India’s Digital Payments: The Rise of AePS and Its Challenges

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A Decade of Digital Evolution India’s digital landscape has undergone a remarkable transformation over the past decade. With the advent of digital payment channels such as UPI, IMPS, and net banking, the country has achieved unprecedented growth in digital transactions. Despite these advancements, one specific demographic—rural middle-aged to senior citizens—was not fully utilizing this ecosystem. To address this gap and make basic banking services accessible in areas with limited banks and ATMs, the government launched the Aadhaar Enabled Payment System (AePS). Introduction of AePS The Aadhaar Enabled Payment System, introduced by the NPCI in 2016, is a digital payment method based on the Unique Identification Number (UIN) linked to the Aadhaar card. It allows Aadhaar cardholders to conduct financial transactions via Aadhaar-based authentication without needing to visit a bank. Instead, these transactions are facilitated by business correspondents (Bank Mitras) using micro-ATMs. AePS empowers all sections of society by making financial and banking services accessible to everyone through Aadhaar. It supports seamless fund transfers, cash deposits, withdrawals, balance inquiries, and more. Additionally, AePS facilitates the disbursement of government welfare schemes such as NREGA, social security pensions, and old age/handicapped pensions. Exponential Growth Since its launch, AePS has seen a significant boost in utilization. In 2019, the revenue from AePS transactions was around INR 5 billion. Within five years, this figure skyrocketed to INR 51 billion in 2024, a tenfold increase. By 2025, it is projected to reach INR 67 billion. In 2023 alone, over 370 million customers conducted transactions through AePS, highlighting its widespread adoption and success. Rising fraud concerns However, the rapid growth of AePS has also attracted fraudsters, targeting the predominantly rural, middle-aged, and senior population. Over the past 2–3 years, numerous reports of AePS-related fraud have surfaced. For instance, in Hyderabad, a gang of cybercriminals was arrested for fraudulently withdrawing ₹14.64 lakh from 149 customers. Such incidents underscore the growing risk of cyber-financial scams associated with AePS. According to the Indian Cyber Crime Coordination Centre (I4C), AePS frauds accounted for 11% of cyber financial scams originating in India in 2023. Addressing Fraud: RBI and NPCI Initiatives In response to the increasing fraud cases, the RBI has instructed banks to streamline the onboarding process for AePS touchpoint operators, including mandatory due diligence. Additional fraud risk management requirements are also being considered. The NPCI has released circulars addressing customer withdrawal limits, account statements, and Business Correspondent (BC) onboarding procedures. Strengthening onboarding processes AePS providers must rigorously scrutinize the onboarding processes for business correspondent agents. This involves conducting comprehensive background checks to verify the authenticity and credibility of potential agents. Additionally, a risk-based categorization system should be implemented, where agents are classified based on an assessment of their history, including any previous instances of fraudulent activities or non-compliance. By adopting a detailed and systematic approach to onboarding, AePS providers can ensure that only trustworthy and low-risk agents are integrated into the system. Moreover, continuous monitoring and periodic reassessment of BC agents are crucial to maintaining high standards of integrity and security. Regular training and awareness programs should be conducted to keep agents updated on the latest security protocols and fraud prevention techniques. By strengthening these onboarding and monitoring processes, AePS providers can significantly reduce the risk of fraud and enhance the overall security and reliability of the payment system. This proactive approach not only safeguards the interests of users but also fortifies the reputation and operational efficiency of the AePS ecosystem. Common fraud scenarios One prevalent fraud scenario involves unauthorized cash withdrawals, where users receive no indication of the transaction. Fraudsters often impersonate fingerprints or deceive customers about the success of transactions. In some instances, BC agents have been known to use silica gel to replicate fingerprints, further complicating the detection of fraudulent activities. These sophisticated methods of fraud underscore the necessity for AePS providers to enhance their security measures and address these specific threats comprehensively. To combat these issues effectively, AePS providers need to strengthen their ecosystem and focus on specific patterns to identify and mitigate fraudulent activities. Key Areas of Focus Preparing for Future Challenges Currently, the primary issue revolves around cash withdrawals. However, with the increasing volume of fund transfers, there is a potential risk of anti-money laundering activities. As AePS providers continue to expand their services, they need to be adequately equipped to handle these emerging challenges. This involves not only detecting and preventing fraudulent activities but also complying with stringent regulatory requirements to ensure the integrity of the financial system. Conclusion The AePS industry is booming, and as it grows, fraudsters will seek new ways to exploit the system. To sustain growth and protect users, financial institutions must enhance fraud and risk management systems by investing in advanced technologies like artificial intelligence and machine learning for real-time monitoring and anomaly detection. Continuous education and training for users and service providers on potential risks and best practices are also crucial. By implementing robust security measures, the AePS ecosystem can mitigate fraud risks and continue to flourish, driving financial inclusion and transforming India’s digital payment landscape. Collaboration with regulatory bodies is essential to stay ahead of emerging threats and ensure a secure, seamless payment experience. With a concerted effort towards enhancing security and compliance, the AePS industry can thrive, paving the way for a more inclusive and digitally empowered India.

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Wibmo Protect — Adaptive Multi-Factor Authentication Solution

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The Reserve Bank of India (RBI) has embarked on a transformative journey by proposing a Principle-Based Framework for the authentication of digital transactions. This pioneering initiative underscores the RBI’s commitment to fostering a secure, seamless, and customer-centric digital payments ecosystem. The primary objective of this framework is to propel the adoption of alternative authentication mechanisms, transcending the traditional SMS OTP paradigm. By embracing innovative authentication solutions, the RBI seeks to elevate the customer experience while fortifying the security infrastructure of digital payments. Furthermore, this strategic move is poised to empower businesses to embark on a journey of innovation, enabling them to explore cutting-edge solutions while upholding the highest standards of security and integrity. In essence, the Principle-Based Authentication Framework heralds a new era of digital transactions, characterized by enhanced security, heightened user experience, and unparalleled innovation. Challenges with OTP Authentication: Traditional SMS OTPs, while prevalent, present significant limitations and risks. They heavily rely on mobile service providers, are susceptible to interception, and contribute to transaction delays and failures, leading to user frustration and financial losses. Limitations of Traditional SMS-Based OTP Authentication: – Reliance on Mobile Service Providers: SMS OTPs are entirely dependent on mobile service providers, making them susceptible to network coverage issues and unable to support offline mode. – Inadequate Support for Cross-Border Transactions: Due to network dependencies, SMS OTPs face challenges in facilitating cross-border transactions and international access. – High Transaction Authentication Failure Rate: In the current scenario, the authentication failure rate for card transactions using SMS OTPs averages between 5% to 8%, primarily due to network dependencies. – Vulnerability to Cyber Threats: SMS OTPs are prone to interception, phishing, MITM attacks, and sim swapping, lacking robust protection for authorized access. – Rising Instances of Fraud: Cybercrimes, including fraud cases involving SMS OTPs, have surged, with approximately 1.1 million fraud cases registered in 2023, amounting to Rs 7,488.6 crore. Additionally, UPI fraud cases reached over 95,000 in the 2022–23 fiscal year. – User Experience Disruptions: Delays or delivery failures in SMS OTPs disrupt the user experience, leading to frustration and contributing to merchant conversion losses. – Increased Operational Costs: Constant intervention is required to manage authentication experiences across various channels, leading to additional costs. The average SMS cost per transaction is 12 paise, which escalates based on the chosen channels. Wibmo Protect: A Revolutionary Solution: Wibmo Protect, a cutting-edge platform, aligns seamlessly with the RBI’s framework. Utilizing a risk-based contextual authentication approach, it leverages machine learning and deep data analytics to detect and prevent fraudulent transactions in real-time. Contextual authentication further enhances security, enabling swift and secure payments without OTPs. Key Benefits of Wibmo Protect: Wibmo Protect offers a multitude of benefits, including: – Fraud Detection & Prevention – Dynamic Risk-based Authentication – Preference-based authentication with multiple modes – Multi-channel support for various transaction types – Reduced chargebacks and increased revenue growth – Merchant opt-out feature – Enhanced consumer authentication experience Wibmo Protect combines three powerful modules: 1. Access Control Server (Accosa ACS): A holistic payment authentication platform integrated with an intelligent risk engine. 2. Enterprise Trident FRM: A comprehensive cross-channel, self-learning risk assessment engine. 3. Tridentity: A multifactor out-of-band authentication solution offering secure, password less authentication. Wibmo Protect emerges as a game-changer in digital transaction security. By embracing innovative technologies and adaptive authentication methods, it sets new standards for security, efficiency, and customer satisfaction. With its comprehensive suite of modules, Wibmo Protect stands as a beacon of trust and reliability in the evolving landscape of digital transactions. Through continuous innovation and commitment to security, Wibmo paves the way for a secure and seamless digital future. Author: Anand K Khanna, Product Manager — Fraud & Risk Management Wibmo A PayU/Naspers FinTech Company Digital Payment, Fraud Detection, Multi-Factor Authentication, Payment Security, RBI

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Browser Fingerprinting- Part 2

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Are you all set to find out more about browser fingerprinting? We bring you Part 2 of this series. Types of Fingerprinting Techniques: Canvas Fingerprinting: The browser fingerprinting technique uses the HTML5 canvas element to identify variances in a user’s GPU, graphics drivers, or graphics card. Steps- First, the script draws an image, often overlaid with text. Then, the script captures how the user’s web browser has rendered the image and text. Naturally, every device with different hardware and drivers will render the image slightly differently, distorting its colour and shape. A hash is then computed using the rendered image’s data, which serves as the ‘canvas fingerprint.” The scripts used for canvas fingerprinting operate in the background to keep the user from realizing that the fingerprinting is occurring. This fingerprinting technique is accurate and not too processing-intensive, making it one of the most commonly employed script techniques. The visitor’s specific browser and device render images, which can be narrowed down to a pool of fewer than 0.01% of total visitors. WebGL Fingerprinting: WebGL fingerprinting is very similar to Canvas fingerprinting, as they both use the browser to render images off-screen. The WebGL API can be used to render 3D forms in the browser. With the help of the three.js JavaScript library, many 3D forms can be rendered, such as Sphere Cube Precomposed geometric shapes The test is not that reliable because it is too sensitive to changes in the environment, such as the size of the browser window or the use of the browser console. These changes caused the dimensions of the rendering context to be updated, which resulted in different rendering results when the page was reloaded. The methodology is still to use images to distinguish users based on their graphics drivers and device hardware. Media Device Fingerprinting: This technique uncovers a list of all the connected media devices and their respective IDs on a user’s laptop or PC. This includes all internal media components like video cards and audio cards, as well as all connected or linked devices like headphones. Media device fingerprinting is not widely used for fingerprinting functions. This is because it requires the user to grant access to their microphone and camera to get a complete list of connected devices. Audio Fingerprinting: While other fingerprinting techniques force browsers to render a text or image, this technique checks how their devices play sound. The browser vendor and version used impact minute differences in sound waves generated by a digital oscillator and differences in CPU architecture. Clock Skew: Clock skew is a measure that can be used to identify the hardware specifications of a machine by analyzing the uneven arrival of electrical signals from a clock generator at different components. These differences can be affected by temperature variations in the hardware and can be analyzed with sufficient data and numerical analysis. This is considered an extreme measure in the field of fingerprinting. Browser fingerprinting workflow: Utilizing browser fingerprinting for authentication during payments as an additional layer of security and protection against fraud is helpful, but it has to be coupled with a two-factor authentication process. Two-factor authentication involves verifying a user’s identity using two different methods, such as a password and a fingerprint or a code sent to their mobile device. By adding browser fingerprinting as a third factor, Wibmo’s Trident FRM solution uses canvas fingerprinting and creates a more secure and reliable payment authentication process. It is important to ensure that proper privacy protections and data security measures are in place, as browser fingerprinting data is unique to each user and can be used to track and identify individuals across different websites and devices. Additionally, it’s important to comply with data privacy regulations such as GDPR, CCPA, and the upcoming Digital Personal Data Protection Bill when collecting and storing browser fingerprint data. Fingerprinting and Online Fraud Detection: Browser fingerprinting techniques can be useful for identifying and targeting visitors with a pattern of fraudulent behaviour on a website. These techniques can be particularly effective in identifying users who use identity concealing techniques such as disabling cookies, using a VPN, or browsing in incognito mode. 1.In cases of account takeover, where malicious users try to hack a legitimate user’s account, fingerprinting and other user identification technologies can be used to add additional security measures to the login process for suspicious traffic only. 2.To prevent brute force or bot attacks, it is best practice to require users to solve a CAPTCHA after a certain number of failed login attempts and to lock out the user for a set time after a certain number of attempts, as such attacks often rely on automation and thus may not have the unique browser configurations of genuine users. a. Browser fingerprinting can detect bots through their unusual browser configurations. b. Multiple login attempts with the same fingerprint can signal a brute-force attack. c. Bots that either lack a unique fingerprint or use identical fingerprints can be spotted and investigated. d. It can improve CAPTCHA systems by triggering a CAPTCHA when a fingerprint is linked to suspicious activity. 3.For phishing scams, requiring email or two-factor authentication for new fingerprints attempting to log in and blocking repeatedly visited fingerprints can also be effective measures. Conclusion: Limitations and current scenario of browser fingerprinting: Author: Vaibhav Chandel, Product Manager Wibmo A PayU/Naspers FinTech Company BaaS

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Regulator asking your bank to migrate from SMS-based OTPs to more secure authentication options? Use the opportunity to derive multiple benefits

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Central Banks are proactively taking steps to reduce the risk of banking/financial fraud The phrase “two sides of the same coin” applies to the world of digital banking and financial services as well. Internet/mobile based banking capabilities have undoubtedly enabled convenience and speed for consumers and reduced costs for service providers. Simultaneously, however, there has also been a steady rise in digital frauds and scams around the world. New ways of scamming consumers are constantly emerging because omni-channel digital first banking has given perpetrators more options based on how banking transactions are authenticated. Central banks around the world have regularly been raising the bar for digital security within their jurisdictions, given their responsibility for orderly conduct of a country’s banking and financial services system and ensuring the highest levels of consumer safety and protection. Individual banks and fintech players are proactively integrating new technologies and protocols to provide customers with the additional security of multi-factor authentication. About a month ago, Bank Negara Malaysia (BNM, the Malaysian central bank) announced that banks operating in that country needed to adopt authentication methods for online activities (opening accounts, making payments and other transactions) that go beyond SMS-based OTPs (One Time Passwords). BNM’s new measures also cover changes to default customer account settings, cooling off periods for new accounts, using just one device for authentication, etc. The rules pertaining to the detection of scams/frauds and the triggering of blocking actions are also being tightened. While many of the steps will kick in after suspicious transactions are detected, what is essential for banks is to strengthen measures that can minimize the occurrence of frauds and scams through superior digital authentication and the detection of risky transactions. OTPs and two-factor authentication are no longer adequate Over the past years, OTPs have become ubiquitous and deeply embedded in our lives as the primary means to authenticate all banking (and many other) transactions. But the two-factor authentication provided by OTPs is no longer enough to provide customers with the desired levels of safety and protection. Authentication is based on entering the 4 or 6 digits sent by the service provider to the customer’s mobile number. It does not verify the identity of the person who has entered the OTP. This means anyone with access to the OTP can easily impersonate a customer and complete transactions without the genuine customer being aware until it is too late. Think about three commonplace scenarios that customers might routinely face: a lost or stolen mobile phone, an unlocked phone on their office desk while they briefly step out, or a phone given for repairs (where unscrupulous staff members have the chance to copy/access personal data). In each of these situations, unauthorized persons can easily access OTPs and other transaction-related messages sent by banks to the phone and essentially “authenticate” transactions that will go through as legitimate transactions initiated/approved by you. If such impersonation risks are not bad enough, think about phishing frauds and scams where users are induced to click on links that they believe have come from their bank or other service providers via SMS. A world of non-banking digital payment apps and platforms gives fraudsters even more opportunities to scam customers by voluntarily giving out information that is needed to complete unauthorized financial transactions. In such a high-risk environment, online authentication must necessarily be made a more rigorous and fool-proof process that is inherently harder to circumvent. Rather than relying on an OTP that can be entered by anyone (and not just the genuine customer), banks must adopt authentication protocols that use multiple data points that can be collectively used to establish customer identity and authenticity of transactions. Multi-factor authentication can make a big difference to the reliability of your authentication and hence customer experience Banks need to balance secure and reliable authentication with the associated costs and impact on customer experience. Working even when there is mobile network latency (or lack of network coverage) is another requirement. Compliance with the bank’s own security norms and complete adherence to prevailing regulatory requirements also needs to be considered. The solution must be such that it can be used seamlessly with mobile banking as well as internet banking. Multi-factor authentication (MFA) solutions tick all these boxes. A robust MFA solution uses a combination of three distinct sets of data points for authentication: · Knowledge- what the customer knows (e.g., password, security question); · Ownership/access- what the user has (e.g., mobile device, USB token); and · Inherence- something that is inherent to the customer (e.g., fingerprint or other biometrics) A world-class MFA solution must provide banks (and other organizations) the option to authenticate customers and transactions based on a variety of authentication touchpoints that cater to customer preferences and risk profiles. It must be used either on a standalone basis or be capable of easily being integrated with a bank’s existing assets. It must support Out of Band (OOB) authentication- which means that the channel used for authentication must be distinct from the one used to sign in or perform a transaction. Ideally, the OOB authentication element must reside in the customer’s registered mobile phone, making it easier to leverage ownership- and inherence-based data points as well for authentication. The MFA solution must be compatible with EMV 3-D Secure and 3-D Secure 1.0 protocols and support CNP transactions as well. Wibmo’s Tridentity is an MFA solution that is designed to address the above needs and deliver the above capabilities. It supports authentication based on Push notifications, Offline OTP, and Biometrics. It is available as a simple SDK or downloadable as an Android/iOS app. Tridentity is compliant with the EU’s PSD2 initiative. Please click on https://www.wibmo.co/tridentity/ for more information on Wibmo’s Tridentity solution and how it can help your bank in Malaysia or elsewhere. If you have specific questions and would like to speak to one of our experts, write to us at sales@wibmo.com. Author: Edward Chien, Director- Sales, South-East Asia Wibmo A PayU/Naspers FinTech Company Authentication, Multi-Factor Authentication, Online Payments, Out of

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Move to Pre-paid Cards for Simplifying your Corporate Expense Management

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Tracking Corporate Expenses made easy Corporate expenses range from individual employee benefits to infrastructural allocation to individual units. Everyone has heard the terms reimbursement, employee benefits claims, and other expenses albeit through the prism depicting a myriad of reactions — most of them unsavory to put it mildly. While the corporate executives find the long process of filing expense reports and submitting the invoices tiresome and at times bordering on lack of trust, the accounts find themselves in an unenviable position of questioning, auditing, and reconciling them with the Company Budget. And when auditors do come out with systems to reduce frauds, Department heads are regularly at loggerheads with accounts over the paperwork. The sum total is interdepartmental bad blood and a constant state of tug of war that can adversely affect both the operations and the accounts. Prepaid Cards for Corporate expenses are a boon to both employers and employees. Prepaid cards are one of the best tools to manage corporate expenses. It is no secret that as the company grows so do the expenses, especially the travel and other petty expenses which form a substantial percentage of the overall budget. The bottleneck in tracking is that the disbursement is through individual employees whose numbers might run in hundreds and at times in thousands. This is where maintaining a balance between fraudulent or mistaken charges versus operationally profitable charges becomes a challenge. The prepaid card enables control over the employee spending through a limit set over time and the amount. This also reduces the massive burden of claims or reimbursements. With reduced dependency on actual cash transactions, policy adherence and automated tracking enable the auditors to access a lot of information without depending on the employees for details saving both time and faceoffs. Pointers to get the most of Prepaid Cards to manage corporate expenses. Ideally, the Prepaid cards could be a major relief, but in practice, it is possible only if certain standards are maintained in the implementation and usage of this facility. Selecting a Vendor who would equip and facilitate these services, is crucial to the successful issuance of the Prepaid cards to the employees or other stakeholders of the company. The prepaid card program must be customized as much as their budget would allow. It should strictly adhere to the company policy with separate options for both open and closed-loop programs. The cards should be configured according to the needs, specific to the company for example some might need it to be used in ATMs while others might want it to work within just the cafeteria and sister concerns of the company. Some could select merchants or categories for a certain department or particular grades. E.g., sales teams should have options to use it on online travel sites or enable multiple currencies for certain grades. Wibmo’s Prepaid solution meets all these requirements and more. Covering the whole range of corporate expenses from payroll to daily expenses and travel expenses they are easy to use and have reloading wallets backed with 24-hour customer support. With every advancement comes its own set of risks and unethical practices. The good news is that the market has vendors who can provide services and fortify them against fraud. Two-factor authentication is always recommended for such cards with EMV chips for added security. Market Proven tools like TRIDENT-FRM can be used to disable fraudulent attempts. Additional security and control can be attained through vendors who provide Host Complete back-office card operations. In short, the prepaid cards can empower the companies to control the corporate expenses thereby bring them down without much sweating whilst the employees, now more aware of the limits, need not spend their productive hours filling out expense reports and more importantly feel more trusted with their dignity intact. Author: Krishnan KN, Advisor in Wibmo’s Agile PMO Wibmo A PayU/Naspers FinTech Company Expense management, Payment Security, Prepaid Card, Reimbursement

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