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Stuart O'Brien

500 Million Smartphone Users Will Be Using a Digital Identity Wallet by 2026
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At least 500 million smartphone users will be regularly making verifiable claims using a digital identity wallet (DIW), according to new analysis from the boffins at Gartner.

Identity verification (IDV) in the form of a user taking a picture of their identity document and a selfie is commonly used today. It establishes confidence in the identity of a person during a digital interaction when curated credentials do not exist, are not available or do not provide sufficient assurance. However, due to challenges with the traditional IDV model, solutions based on portable digital identity (PDI) have emerged.

“The market is entering a transition period as PDI solutions are starting to mature, which in the next five years, will reduce the demand for standalone IDV,” said Akif Khan, VP Analyst at Gartner.

The current IDV model of a user being asked to do the ID-plus-selfie process repeatedly, is not ideal. “The processes in place today are focused and limited to core identity data (name, date of birth, address etc.). As more and more processes move online, there is a need to tie many other attributes to a user’s identity, such as educational or workplace qualifications, proof of employment, not to mention healthcare data,” said Khan.

A PDI is best defined as a digital identity that contains all the necessary attributes for identifying someone in the digital world. PDI also means that the user maintains some level of control over security and privacy.

The principle of PDI is that the user formerly proves their identity with a trusted entity, and once authenticated, it is recorded as an identity assertion. That identity assertation is either stored with the party that verified their identity (centralized model) or saved in a DIW on their smartphone (decentralized model). Decentralized models also offer the benefit of using verifiable credentials, which allow users to make assertions without revealing more data than they need to – for example, proving that you are over 18 years of age without sharing your date of birth.

Governments are already taking action. The European Commission (via eIDAS Regulation) will require all EU member states to make a DIW available to citizens by 2026. However, many vendor products are available today that enable organizations to benefit from PDI for targeted use cases.

“Chief information security officers (CISOs) do not need to wait for a government to provide all citizens with a PDI solution,” said Khan. “For example, in the workforce, CISOs can use a readily available decentralized identity wallet product and issue it to their employees. The wallet could then be integrated into their employee onboarding, account recovery and IT help desk workflows. This is ultimately improving security by introducing strong authentication and improving UX by removing the need for repeated IDV.”

Have you secured your place at the Fraud Prevention Summit next month?
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Would you like to meet 1-2-1 with the industry’s leading fraud suppliers at the upcoming Fraud Prevention Summit? This unique event has been designed for professionals, like yourself, to help you source new solution providers, through 1-2-1 meetings in a relaxed and intimate setting, unlike regular expos.

DATE: 6th November 2024 

VENUE: Hilton London Canary Wharf

BOOK NOW!

Your pass will be fully funded to attend as our guest, which includes:

  • A personalised 1-2-1 meeting itinerary with suppliers of your choice, who match your requirements
  • Attendance to our educational seminar programme hosted by leading minds
  • Full hospitality including lunch and refreshments
  • Multiple networking opportunities with peers

To find out more information please contact us and I we’ll be happy to share more insight about the event, or visit our website.

If you specialise in Biometrics for Fraud Prevention we want to hear from you!
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Each month on Fraud Prevention Briefing we’re shining the spotlight on a different part of the market – and in November we’ll be focussing on Biometrics for Fraud Prevention.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in Biometrics for Fraud Prevention and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 |  j.****@fo*********.uk .

Nov – Biometrics for Fraud prevention
Dec – Mobile Fraud Prevention
Jan – Digital Identity Verification
Feb – Fraud Prevention Solutions
Mar – Risk Prevention & Compliance
Apr – Financial Crime
May – Multi-factor Authentication
Jun – Digital Identity Verification
Jul – Fraud Detection Tools
Aug – Anti Fraud Platforms
Sep – AI for Fraud
Oct – Chargebacks

These are the most in-demand Fraud Prevention solutions for 2025
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Fraud Detection Tools, Anti-Fraud Software and AI are topping the list of technologies the UK’s anti merchant fraud professionals are sourcing for 2025, according to our exclusive research.

The findings have been revealed in the run up to the Fraud Prevention Summit, which takes place on November 6th in London and are based on delegate requirements.

Delegates registering to attend are asked which solutions they needed to invest in during 2024/25 and beyond.

Fraud Management Software and Digital Identity rounded out the Top 5.

Top 10 technologies being sourced by Fraud Protection Summit delegates 2024/25:

Fraud Detection Tools

Anti-Fraud Software

AI

Fraud Management Software

Digital Identity

Risk Prevention

Biometrics

Customer Identity Verification

Device Intelligence

Dispute Management

For more information about the buying trends data and the Fraud Prevention Summit, contact Jennie lane on 01992 374098 | j.****@fo*********.uk .

New M&S self-serve B2B platform doubles down on fraud prevention
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BHN (Blackhawk Network) has entered a partnership with M&S to launch the retailer’s first self-serve B2B eCommerce platform, with a particular emphasis on combatting attempted fraud.

In short, the retailer will now have a self-service ecommerce platform that B2B buyers can access at any time to complete gift card orders.

The platform will allow B2B buyers to register on the site, with BHN responsible for running the relevant fraud checks. Once complete and approved, the buyer will be granted access to M&S B2B gift cards, and a range of product and delivery options to suit their needs.     

The growth of digital transformation within the gift card sector was a driving factor for M&S to invest in the platform. BHN will support M&S with several elements of its B2B programme – from customer service, hosting, and fulfilment, through to mitigating risk and fraud.

M&S and BHN have a longstanding relationship across other sales channels including physical and digital distribution and incentives. 

Heather Rogers, VP Business Development EMEA & APAC, BHN said: “M&S is one of the leading brands in the UK and one of the most popular gift cards in the UK market. As such, this is a significant win for BHN. The B2B gift card space has become the dominant force in the UK market, and we see some great opportunities to help M&S harness this growth. We feel that the platform and service we are providing M&S with will really enable them to scale their B2B business and we are excited that a brand such as M&S has put its trust in us.”

Warren Humphries, Marks and Spencer, said: “As we reshape for growth, we are always looking for new ways to innovate and respond to evolving customer needs. Our gift cards are hugely popular and as the industry continues to digitalise, partnering with BHN on a self-serve ecommerce platform will help us deliver a more seamless experience for our B2B customers while supporting the growth of our gift card offer.”

Photo by Aleksandr Rebenkov on Unsplash

AI MONTH: A buyers guide for AI-powered anti-fraud solutions
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As fraudsters become increasingly sophisticated, senior anti-fraud professionals in the UK’s e-commerce and banking sectors must leverage advanced technologies to stay ahead. AI-powered solutions offer powerful capabilities for detecting and preventing fraud. Here are key considerations when selecting a provider, based on delegate priorities at the Fraud Prevention Summit…

Understanding Your Organisation’s Needs

  • Identify Fraud Risks: Assess your organisation’s specific vulnerabilities and potential fraud types.
  • Regulatory Compliance: Ensure the solution complies with relevant regulations, such as GDPR.
  • Integration Capabilities: Evaluate the provider’s ability to integrate with your existing systems and data sources.

Key Considerations for Supplier Selection

  • Expertise and Experience: Look for providers with a proven track record in the field of AI-powered fraud detection.
  • Technology Stack: Assess the provider’s underlying technology and its ability to handle large datasets and complex algorithms.
  • Customization: Ensure the solution can be tailored to your organization’s specific needs and risk profile.
  • Scalability: Verify the provider’s ability to handle increasing volumes of data and adapt to evolving fraud tactics.
  • Customer Support: Evaluate the level of customer support and technical assistance provided.
  • Cost-Effectiveness: Compare pricing and value offered by different providers.

Common Mistakes to Avoid

  • Relying Solely on AI: While AI is powerful, it should be used in conjunction with other security measures.
  • Neglecting Data Quality: Ensure the data used to train AI models is accurate and representative.
  • Underestimating the Complexity: Implementing AI-powered fraud solutions can be complex and time-consuming.
  • Ignoring Ethical Considerations: Address ethical concerns related to data privacy and bias in AI algorithms.

Top Tips for Successful Implementation

  • Conduct Proof of Concepts: Test the solution with real-world data to assess its effectiveness.
  • Continuous Monitoring and Evaluation: Regularly review the solution’s performance and make necessary adjustments.
  • Stay Updated on Fraud Trends: Keep informed about emerging fraud tactics and ensure your solution can adapt.
  • Build a Strong Partnership: Establish open communication and collaboration with the provider.

By carefully selecting an AI-powered anti-fraud solution provider and following these guidelines, senior anti-fraud professionals can strengthen their organisation’s defences against sophisticated fraud threats.

Are you looking for AI-powered anti-fraud solutions for your organisation? The Fraud Protection Summit can help!

Photo by Igor Omilaev on Unsplash

European credit sector associations call for more fraud prevention efforts
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The European Credit Sector Associations, composed of the European Association of Cooperative Banks (EACB), the European Banking Federation (EBF), the European Savings and Retail Banking Group (ESBG) have welcomed the publication by the Euro Retail Payments Board (ERPB) of its Working Group Report on fraud related to retail payments.

On top of the three Associations, other key stakeholders from the private and public sector have actively contributed to the Report. It identifies four “gamechanger” actions that are necessary to strengthen the fraud prevention and mitigation across Europe, as well as a set of best practices identified to combat fraud.

Sanne van der Neut, co-Chair of the working group on behalf of the EACB, representing the supply side, said: “This report comes at an important point in time. Fraudsters are getting increasingly inventive and the fraud chain is becoming more complex. Fighting this needs a multistakeholder approach and one that goes beyond the payment sector.” 

The report is the outcome of a collaborative effort that brings together the perspectives and unique insights from a wide range of parties affected by fraud, including representatives from consumer and merchant organisations, bank and non-bank payment service providers, central banks, the European Banking Authority, the European Commission, the European Data Protection Board, and Europol. 

The four “gamechangers” identified for a more effective prevention and mitigation of fraud are:
1) Effective cross-sectoral collaboration beyond the payment industry and shared responsibilities;
2) The sharing of fraud insights and data;
3) A supervisory enforcement and cooperation at EU level across sectors beyond the payment industry;
4) Ensuring that product design prioritises consumer protection.

For each gamechanger, several actions are recommended that EU, national authorities, and the private sector can implement. It is especially noted that these recommendations can be particularly relevant to the work of the European Parliament and the Council, in the context of the ongoing negotiations on the proposal for a Regulation on payment services in the internal market (PSR) and beyond. The conclusions of this cross sectoral collaboration highlight that digital fraud and scams relate to a far broader and more complex matrix than the point of payment alone and should be regulated in a sufficiently comprehensive way outside the auspices of payments regulation.

The paper also includes a list of best practices, intended to serve as a collection of measures that public and private actors can draw upon when combating fraud. 

The ERPB Working Group, launched in May 2023, was prompted by the rise of fraudulent activities accelerated by digitalization and social engineering. This initiative underscores the need for all actors in the fraud chain to collaborate more efficiently in preventing and combating fraud.

If you specialise in preventing Chargebacks fraud we want to hear from you!
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Each month on Fraud Prevention Briefing we’re shining the spotlight on a different part of the market – and in October we’ll be focussing on Chargebacks.

It’s all part of our ‘Recommended’ editorial feature, designed to help industry buyers find the best products and services available today.

So, if you specialise in Chargebacks and would like to be included as part of this exciting new shop window, we’d love to hear from you – for more info, contact Jennie Lane on 01992 374 098 |  j.****@fo*********.uk .

Oct – Chargebacks
Nov – Biometrics for Fraud prevention
Dec – Mobile Fraud Prevention
Jan – Digital Identity Verification
Feb – Fraud Prevention Solutions
Mar – Risk Prevention & Compliance
Apr – Financial Crime
May – Multi-factor Authentication
Jun – Digital Identity Verification
Jul – Fraud Detection Tools
Aug – Anti Fraud Platforms
Sep – AI for Fraud

WEBINAR: Unlock your revenue potential – Strategic chargeback management for EMEA payment leaders
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As chargebacks are projected to reach $165 billion by the end of 2024, ecommerce payments professionals are facing an unprecedented challenge—yet most are leaving 40% or more of disputes uncontested, leading to substantial revenue losses. This webinar will dive into the root causes, including the rise of first-party fraud and why neglecting to fight chargeback sends a signal to bad actors that you are “open for fraud.”

Tailored for payment professionals, this webinar will teach you how to safeguard your revenue, alleviate operational strain, and strengthen your standing with banks and processors.

Join Riskified on September 18th at 3 PM (GMT+1) to equip your business with the latest strategies and advanced tools to stay ahead in the evolving fraud landscape. You’ll walk away with the knowledge to:

  • Implement revenue-saving chargeback management strategies
  • Effectively prevent chargebacks upfront
  • Boost operational efficiency and unburden internal resources

September 18th, 2024 

3 PM GMT+1

Click Here To Register

AI MONTH: Identifying the key anti-fraud use cases in your organisation
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AI is revolutionising the fight against financial fraud, offering sophisticated solutions that can outsmart even the most sophisticated fraudsters. Here are some of the key ways AI is being deployed by delegates at the Fraud Protection Summit…

  1. Real-time Transaction Monitoring: AI algorithms can analyze vast amounts of transaction data in real-time, identifying suspicious patterns and flagging potentially fraudulent activity. This enables swift intervention and reduces financial losses.  
  2. Behavioral Biometrics: By analyzing user behavior patterns, AI can detect anomalies that may indicate fraudulent activity. This includes factors like typing speed, mouse movements, and even voice patterns.  
  3. Fraud Detection Models: AI models can learn from historical data to identify new fraud patterns and adapt to evolving tactics. This helps prevent fraudsters from exploiting vulnerabilities in traditional detection systems.  
  4. Customer Onboarding and Verification: AI can automate customer onboarding processes, verifying identities and detecting potential fraud risks at the initial stages. This reduces the likelihood of fraudulent accounts being created.  
  5. Synthetic Data Generation: AI can generate synthetic data to train fraud detection models without compromising customer privacy. This allows for continuous improvement of fraud prevention capabilities.  
  6. Bot Detection: AI can effectively detect and block bots that are used to automate fraudulent activities, such as account creation or credential stuffing.  
  7. Social Network Analysis: AI can analyze social media data to identify potential fraudsters based on their online behavior and connections.
  8. Machine Learning for Anomaly Detection: Machine learning algorithms can identify unusual patterns in transaction data that may indicate fraudulent activity, even if the patterns are not explicitly defined.  
  9. Natural Language Processing (NLP): AI-powered NLP can analyze text data, such as emails or chat logs, to detect fraudulent communication patterns.  

AI is a powerful tool in the fight against financial fraud, offering real-time detection, adaptability, and the ability to handle vast amounts of data. As AI technology continues to evolve, we can expect even more sophisticated and effective solutions to emerge.

Are you looking for AI-powered anti-fraud solutions for your organisation? The Fraud Protection Summit can help!

Photo by Nathana Rebouças on Unsplash