Fin-tech company HID Global has introduced a new product which aims to both prevent fraud and make payments more convenient.
ActivID Trusted Transactions uses transaction signing during the transaction notification and authorization stages. A push notification provides a secure channel to financial institutions to notify customers about pending transactions on their phones and tablets. Those transactions proceed once the client approves them.
HID Global Vice President Tim Phipps said consumers need tools to help them detect fraud.
“Customers are finding it increasingly difficult to differentiate between legitimate websites, emails, and phone calls originating from their own bank versus those created by fraudsters.”
“With our ActivID Trusted Transactions solution, banks can offer far more convenient out-of-band transaction notification and authorization on mobile devices, which provides customers real-time alerts before a suspicious transaction being applied to their account. This places the control back in the customer’s hands by providing them with simple way to confirm the legitimacy of a pending transaction.”
HID Global explained in a release that financial institutions often use insecure one-time password authentication methods which can be easily exploited by cybercriminals.
In its place, HID uses transaction signing with private key cryptography over a trusted and secure electronic channel. All communication gets encrypted with mutual authentication between the financial institution’s online banking application and the user’s mobile device.
A private key is generated outside the financial institution’s back end system and protecting it against manipulation.
A Gartner research vice president said out-of-band authentication with push modes is a top method for several reasons.
“Trust, total cost of ownership and user experience vary among individual phone-as-a-token methods,” Ant Allan said. “Out-of-band authentication using push modes offers the best balance of trust and UX, making it the best choice across many use cases.”