Online fraud is a huge problem, and it seems to be getting worse. Criminals sometimes steal millions of credit card numbers at once, and some of these breaches lead to billions of dollars in damage.
While the systems that are meant to secure credit cards against fraud could use plenty of shoring up, there are other approaches that are proving their value, as well. Companies like Jumio are helping to make the world of online commerce more secure by making it easier to verify the identities of those who submit payments.
Criminals Are Becoming Craftier About Making the Most of Stolen Credit Card Details
Most credit card issuers already have fairly sophisticated fraud prevention systems in place, but criminals are never content with defeat. In recent years, they have developed ways of targeting especially vulnerable vendors and banks in order to maximize the returns from their illicit activities.
In some cases, the financial damage that results can be enough to threaten the continued existence of a targeted business. With criminals showing no signs of slowing down in their efforts to commit fraud online, new approaches are sorely and clearly needed.
Securely, Reliably Verifying the Identity of a Customer
While criminals might regularly collect credit card details to which they should never have access, going far beyond that becomes a lot more difficult. Even if some of the most resourceful criminals are able to associate particular accounts with billing addresses and the like, authorized cardholders will always have advantages.
In particular, someone who is the rightful owner of a particular card should be able to present identification confirming the person as such. Whether in the form of a driver's license, a passport, or another official form of ID, just about every credit card owner should have evidence of being the authorized person in question.
In the past, being able to leverage this fact in a reliable way suitable to efficient online commerce was almost entirely unthinkable. A new wave of technologies, however, is making it possible for smartphone owners and others to present identification that can be verified automatically and securely. As a result, online fraud could become less common, saving everyone a good deal of money and trouble.