The TSYS Take: Preparing for What Comes Next as Fraud Crosses Borders

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The TSYS Take: Preparing for What Comes Next as Fraud Crosses Borders

Sep 16, 2019

The TSYS Take: Preparing for What Comes Next as Fraud Crosses Borders

David Andre

By David Andre, senior vice president, risk and fraud management, TSYS

If your business is based in Europe or the UK, your compliance efforts with PSD2 are probably well under way, if not completed.

But if you’re based elsewhere, the million-dollar question remains: How proactive should you be about adopting the SCA standards set in place by the mandate? 

What is Strong Customer Authentication? A chart showing three items. 1) Knowledge 2) Possession 3) Inherence

Sure, technically, you don’t have to do anything just yet. But as PSD2 compliance ramps up in Europe, we’ll see a trend very similar to what we saw with the worldwide implementation of EMV: fraud migration to countries with less stringent requirements. In other words, a ripple effect is coming as criminals shift their focus to targets with lower barriers to fraud.

We built our TSYS Authentication Platform with all of these factors in mind – namely keeping customer friction low while keeping fraud rates down and, most importantly, giving you the ability to scale and adapt your strategy for the future. That means SCA, of course. But it also means what comes after that: biometrics, machine learning or other tools that the market or regulation demands – even beyond point of sales and PIN pads into the IoT and beyond.

What makes our platform different? In short, it’s the double-redundancy. We draw upon both personally identifiable information (PII) and data regarding specific customer interactions and financial transactions. The Authentication Platform is driven by real-time data taken directly from remote cardholder touch points, such as websites or mobile apps, so there’s no lag time from waiting for reporting.

So you can wait for a PSD2-like directive to be implemented in your country – or don’t. But no matter how global identity fraud regulations or market forces evolve – be it in connected cars, voice-activated devices or even your standard plastic cards – know that our Authentication Platform will help you prepare for what comes next.

Read more about the next frontier of authentication