Why the Samsung Galaxy S4 is important to watch for Fraud Management professionals?

Well, we just saw Samsung launch its latest ubergizmo with tons of interesting features, like pause video playback at the blink of the eye. However, there is an important hardware feature of the Samsung Galaxy S4 to note here: finally a Near Field Communications (NFC) chip is embedded in the device (something that Apple left out of the iPhone 5), making it useful for mobile payments, building access control, and lots of other security uses. Issuers, payment services providers and trusted services managers have long been dreaming of mobile phones with NFC chips: not having to send plastic credit cards with EMV chips (or magstripes in the US) but being able to personalize the credit card right on the phone reduces card management costs, improves end user  satisfaction. There is nothing new here. But here's where NFC finally in a mainstream mobile phone can revolutionize fraud management:

1) GPS verification. So if you use it to make a card present transaction by touching your phone NFC credit card to a PayPass or other proximity based credit card reader, the payment authorization platform can immediately know where you are, correlate it with the riskiness of the location (country) and use your location to build a risk score. 

2) More factors and better capabilities for payment authentication. Instead or in addition to asking for a PIN code for transaction authentication, the payment processor can contact your registered phone and - based on risk - can ask for a PIN code signature, or secondary authentication like facial recognition or biometric retina vein recognition to authorize a higher value transaction.

3) Linking the NFC chip to an eWallet. This will be easier than ever before. If the NFC chip is initialized to be a credit card, the eWallet application can check for the presence of it and maybe even use it in a card present transaction. 

 

Mobile application behavior detection: the cheap way to catch fraud

After RSA's acquisition of SilverTail, things are heating up in mobile application level behavioral detection. 

We see fraud management vendors increasingly looking at mobile application behaviors (beyond web fraud management and device fingerprinting) to build out a normal and abnormal behavior profile for the network traffic signatures coming out of the application (similarly to how SilverTail/RSA looks at web traffic signatures). Note that this is clearly a grey area that falls between what device fingerprinting vendors (iovation, 41st Parameter, BlueCava, ThreatMetrix), or risk-based authentication (RBA) vendors (RSA, Entrust, CA/Arcot, etc.) or what traditional back-end, cross-channel transaction monitoring vendors (Actimize, ACI, Detica, SAS, etc.) have been doing. Although device fingerprinting and RBA vendors have long been providing SDKs and APIs for developers to include in their mobile applications, understanding mobile application network traffic and building good and bad behavioral models is becoming something people are increasingly interested in.

Mobile application behavior detection has the benefits of not having to open up application code, not having to define too many security policies or rules. Because of this, mobile application behavior detection and network traffic signature profiling is something we expect to see a lot of vendor interest in the next 9-12 months.

Want to know hardcore survey results on Access Certification and Attestation?

 

Want to know more about Access Certification and Attestation? Would you like to win an iPad and get a courtesy copy of a Forrester report on the findings of a survey on the topic?
 
Forrester is collaborating with the University of British Columbia (UBC) on an Identity and Access Management survey. The main topic of the survey is Access Certification and Attestation, also known as Access Governance. It takes only 15 minutes to complete the survey. In August 2013, Forrester, in collaboration with UBC, will publish the highlights of survey results. 
Here's what we offer for your participation:
 
If you complete the survey, 
  • You will eligible to win a 128 GB iPad in a raffle organized by UBC.
  • Forrester will send you a courtesy PDF copy of the report.
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