|By RealWire News Distribution||
|April 11, 2013 08:30 AM EDT||
UKFraud (www.ukfraud.co.uk) has set up a new Special Interest Group (SIG) for the Mobile Payments sector. The new SIG will monitor, analyse and report on key market developments for use by stakeholders in the domestic fraud prevention sector. The SIG consists of leading fraud prevention consultants coupled with representative input from a wide range of mobile payment industry specialists. In its initial review, the SIG will analyse those characteristics and challenges of the mobile payment market that are most likely to encourage fraudsters to target the sector. In particular, the SIG will investigate the factors that could give rise to an increased risk of fraud. Amongst the key market challenges that the SIG will review are:
1 Sheer Scale of Market Growth
The SIG notes the appearance of a number of spectacular recent mobile payment market forecasts. These include a report from Reuters, in March 2013, highlighting a survey by 'Heavy Reading Mobile Networks Insider' suggesting: "The mobile payment industry is growing, offering revenue generating solutions throughout the market and potentially… $1 trillion in global transactions by 2015."
The SIG is also conscious of the global spread of mobile payment, with the explosive growth of m-commerce in the United States, China, India, Latin America and the Far East. Recent data from the ITU (International Telecommunication Union) supports this, pointing to global mobile subscriptions now reaching 6 billion. However, in the face of this backdrop of explosive growth, the SIG is concerned that key sector protagonists lack visible preparedness for the likelihood of such large-scale market expansion or the resultant fraud risks that might ensue.
Indeed, the SIG believes from its own analysis of the sector, that only a small proportion of marketers currently have any formal strategy for leveraging and exploiting mobile payments fully. And, whilst there are also other reports that there is a huge need for 'Mobile SEO' to spread the news of the latest products to potential consumers, it is the SIG believes, also still a relatively scarce activity. Should this scenario represent reality on the promotional side, then it is also unlikely, the SIG believes, that adequate fraud systems will have been put in place by many of the main players either.
2 The Speed of Technology Advances
The SIG also recognises that the greatest challenge to the development of plans and strategies that align organisations within the mobile payments sector is the sheer speed of technical change. Seemingly, all the main mobile device players are racing to produce the 'next best thing' and major forces such as Google with its Wallet and Apple with the Passbook are also having a significant and positive impact with market pundits. The international card schemes also have an influence on the development route(s) as do many other highly innovative and respected third parties including: iZettle, mpowa, and PayPal. However the chances are, says the SIG, that whilst some of the other sector protagonists, regulators and customers could potentially struggle to keep pace with such an enormous rate of change, the fraudster thrives in such fast moving environments and simply 'adapts' like an 'amorphous entity' to outsmart and outflank the market's developments.
3 What Are The Customer Perceptions of The Mobile Payments Sector?
Amongst the other contradictions to be reviewed by the SIG are claims by some pundits who point to the relatively modest levels of take up of mobile payment products to date. Whilst some believe that many people are waiting until the next 'big thing' appears, others cite the plethora of new products already appearing. Some claim that this consumer reluctance to adopt, is the result of confusion over the number and nomenclature of devices and financial products. Yet others highlight a number of recent high profile data breaches both amongst financial services and social media companies which drive caution amongst consumers. However, it is felt that once a major new standard or solution appears that the dam could break. When the dam breaks, the SIG feels, there is a potential concern that some of the new solutions will be more easily and quickly exploited by fraudsters than those that currently benefit from clear best-practice and consumer guidelines.
4 Can Standards Keep Pace?
Whilst standards would boost consumer confidence, the impact of technology and financial product churn coupled with extreme growth could, the SIG believes, threaten the applicability of many existing standards. Other newer standards might simply not keep pace. There is also, the SIG believes, a myriad of organisations from which such standards can come. This could well cause confusion for consumers and therein delight the fraudsters.
The SIG feels that a widely respected organisation that might potentially take a positive lead in the payments sector is UK Payments (formerly APACS). The SIG will also review other alternatives and analyse which existing standards bodies might develop an effective solution. Well regarded bodies might include: the ISO or the European Payments Council, which could potentially, some feel, develop a new SEPA regulation for the mobile sector. The SIG will also review whether widely acclaimed and respected card schemes (such as: Visa / MasterCard etc.) might take a lead as there is potentially a strong interest to capture the market if it grows rapidly.
The SIG feels that potentially mobile payments control could be evolved through an entirely new 'standard' that will develop by default and be adopted by others. It is possible, says the SIG, that this could be led by a card organisation, a proprietary payments provider, by an individual bank or a telecoms company. Indeed, the SIG believes that there is every chance that it could result from a collaboration or spin-off of any of the above. Indeed, as things roll-on so fast, this body may not yet exist.
Mobile payments could potentially, the SIG claims, replicate traditional magnetic stripe read transactions; or even replace the later 'chip read' transactions. This would cause an evolution in ecommerce transactions through m-commerce, and be the ideal facilitator of NFC contactless payments. In addition, mobile devices could very well become the first choice to be used by merchants as a payment acceptance terminal themselves.
5 Who Owns The Regulation?
The SIG will also review whether a 'potential standards debacle' might have a 'knock-on' effect upon regulation. The SIG feels that there are so many complications, and so many interested stakeholders, all with conflicting desires to collaborate or compete, that it is hard to know where and how mobile payments will be regulated, let alone who will 'own' the regulation.
It will be interesting to see the role governments play. The SIG feels that with the respected EU Cyber directive focussing on setting good foundations with the Network and Information Security standards in individual member states, the current thrust seems potentially a long way from specifically addressing mobile payments. Turning to the UK, the SIG questions whether the government is likely to drive innovation in this area, as the risk, payments and fraud skills within the leading departments (Cabinet Office, FED and the National Fraud Bureau) might not be those required.
Commenting on the new SIG, its Chairman Kevin Smith (a former head of fraud management at Visa Europe and now an independent payments, risk and fraud specialist) feels that the review will highlight a need to 'build fraud prevention in' at all stages early on. He notes, "There will be so much potential change and growth, that it's not just the technology vendors or financial service providers that are watching the situation closely. Rest assured that a seasoned group of criminals will be looking just as closely, albeit at a different range of opportunities. Only by sharing information and working together at an early stage can the sector start to properly understand the challenges and offer a really effective series of counter-measures. Our aim is hopefully to assimilate and collate a weight of analysis that will prove useful to those stakeholders who are keen to fend off fraudulent activity."
Bill Trueman CEO of UKFraud welcomed Smith's comments. In his view, sharing information and collaboration could work at all levels and could even be led by the UK government. He notes, "Potentially there is a golden opportunity here for the UK to take a lead. Naturally a governmental lead would be preferable. However, some feel that The NFA (National Fraud Authority) and also the Cybercrimes Unit are rather more engaged in defending UK Plc., against attacks than driving commercial standards globally in internationally applicable growth areas such as this. However, they should play a major role here. Some though feel that recently the priority of these bodies has been turned upon the domestic public sector, as this alone is a mammoth area to direct and protect. Hopefully, though, if the mobile payments sector grows as fast as has been suggested, the UK government will then see an opportunity to invest an appropriate amount of money in safeguarding the UK from fraud in the mobile payments sector. In the meantime, we shall work alongside other like-minded groups as a collective approach is certainly one way to ensure that the right information is shared by those in fraud prevention who most need it."
The SIG's findings will be published later this year.
About UKFraud (http://www.ukfraud.co.uk/)
UKFraud is a leading UK based consultancy, with an impressive international track record of eliminating the risk of fraud. Its founder Bill Trueman is widely accepted as one of Europe's leading fraud experts and a frequent commentator and writer on the issues involved. Trueman has extensive experience of the banking, insurance and the financial services sectors and is a thought leader at the forefront of many industry wide and international debates.
For further information, please contact:
020 8133 7575
The Right Image PR
0844 561 7586
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 10, 2016 07:45 AM EST Reads: 432
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 10, 2016 07:00 AM EST
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 10, 2016 12:45 AM EST Reads: 195
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 10, 2016 12:00 AM EST Reads: 202
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 9, 2016 10:15 PM EST Reads: 238
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 9, 2016 05:00 PM EST Reads: 169
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
Feb. 9, 2016 04:00 PM EST Reads: 607
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 9, 2016 03:15 PM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 9, 2016 03:00 PM EST Reads: 178
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 9, 2016 02:45 PM EST Reads: 208
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 9, 2016 02:45 PM EST
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 9, 2016 02:15 PM EST Reads: 403
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 9, 2016 01:15 PM EST Reads: 382
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 9, 2016 11:30 AM EST Reads: 414
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 9, 2016 08:00 AM EST Reads: 378
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 9, 2016 07:45 AM EST
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
Feb. 6, 2016 03:30 PM EST Reads: 757
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
Feb. 5, 2016 09:00 PM EST Reads: 816
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Feb. 2, 2016 04:30 AM EST Reads: 885
Learn how IoT, cloud, social networks and last but not least, humans, can be integrated into a seamless integration of cooperative organisms both cybernetic and biological. This has been enabled by recent advances in IoT device capabilities, messaging frameworks, presence and collaboration services, where devices can share information and make independent and human assisted decisions based upon social status from other entities. In his session at @ThingsExpo, Michael Heydt, founder of Seamless...
Feb. 1, 2016 05:00 AM EST Reads: 975