Digital payments and digital scams are two things that have become frequent during the pandemic. To assist with both of these, eftpos is rolling out two new security initiatives for its electronic payment system in Australia.
Possibly the biggest change that will affect consumers is the introduction of two-factor authentication. Known as ‘eftpos Secure’ the 2FA system will help to reduce the risk of fraud for both consumers and merchants.
The system will be EMV 3-D Secure but eftpos hasn’t revealed details on what sort of 2FA options will be available. Typically two-factor processes require a code from a text message or authenticator app on a user’s personal device to verify their identity.
The system has apparently been in development for several years and is aiming to roll out in November 2021.
Many websites use two-factor authentication systems for secure login and authorisation, so it makes sense to roll this out to payments as well.
Network fraud scoring
The second anti-fraud capability is network fraud scoring. This will assist financial institutions to assess risk associated with individual transactions.
Things are a bit unclear on how this will work but an eftpos spokesperson told ITnews that the new system will provide a “network view of transactions” and make use of machine learning and artificial intelligence.
These new anti-fraud measures will also allow eftpos to expand into higher risk online transactions.
“The introduction of these new anti-fraud services means we can extend eftpos payment options for consumers and merchants into higher-risk categories of the online payments environments with confidence, and keep driving competition in this space,” eftpos CEO, Stephen Benton, said in a statement.
According to eftpos, 84 per cent of credit card fraud occurs in the online environment which is why the company has been developing these initiatives carefully over a number of years.
“The introduction of these enhanced anti-fraud tools completes the market-wide enablement of omni-channel processing support for purchase transactions. This allows eftpos to support transformational digital commerce experiences for all Australians,” Benton said.
These initiatives come after the recent announcement that eftpos is looking into a QR code payment system in Australia. Aiming for a 2022 release, the QR code system would allow users to partake in secure payments through a digital wallet on their device.