Capitec Bank has beefed up its online shopping security with an EMV 3D Secure feature, which incorporates behavioural analytics intelligence, to provide customers with real-time risk-based authentication for online purchases.
The local retail bank says it deployed the services of Entersekt, a provider of identity and customer authentication software, to integrate its NuData Security behavioural analytics intelligence into its EMV 3D Secure solution, to protect customers when they make online purchases.
Entersekt uses behavioural biometrics in the form of artificial intelligence and machine learning, to analyse thousands of data points on people's normal behaviour online (like how fast we type, common typos and other individual quirks), in conjunction with device identification, to confirm user identity.
Local banks have been warning customers of a new e-commerce fraud scheme, saying the growing trend of online shopping requires customers to be vigilant. With this new trick, online merchant fraudsters use automated scripts or software to attempt to make transactions or payments.
Other common types of online shopping fraud include card testing, account takeover, interception, chargebacks and refund fraud.
“E-commerce or ‘card-not-present’ fraud remains unacceptably high in South Africa, accounting for 80% of credit card and 53% of debit card fraud, according to Sabric,” says Schalk Nolte, CEO of Entersekt.
“Entersekt’s EMV 3D Secure combines our strong authentication technology with the latest in behavioural technology to address exactly this security issue. Our solution is unique in that it is fully customisable, enabling Capitec to create differentiated e-commerce experiences for cardholders.”
Capitec says the solution combines behavioural biometrics, machine learning, and insights from billions of anonymous data points to distinguish between authentic users and potential fraudsters based on their online, mobile app and smartphone interactions, flagging those that represent the highest risk.
“We are constantly looking for ways to offer the best security possible without impacting our customers’ experiences. By implementing Entersekt’s EMV 3D Secure solution with behavioural analytics from NuData Security, we are able to provide an additional level of protection for our e-commerce transactions,” explains Francois Viviers, executive: marketing and communication at Capitec Bank.
The Consumer Goods and Services Ombud has warned of an increase in fraudulent online shopping sites in SA, with hundreds of consumer complaints lodged.
SA’s e-commerce sales reached a tipping point in 2020, growing by 66% from 2018, as a result of the COVID-19-induced lockdown, which saw more consumers taking to online shopping channels and delivery services.
Meanwhile, in another tech development for Capitec, it has partnered with global cloud banking solutions provider nCino, to build the bank’s business banking loan management system, optimising its processes to seamlessly offer loans to its 17 million retail customers and 70 000 business customers.
Karl Kumbier, executive of Capitec Business, says: “Capitec is a brand that is associated with hard work, innovation and disruption. It is the fastest-growing bank in the country and we are looking forward to taking our ethos of simplicity even further, with the inclusion of this technology into our systems for a more seamless experience for the businesses we serve.”
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