Card fraud prevention

International Card-present

For card-issuers the world over, one of the greatest challenges faced is cross-border fraud committed at ATMs and Point-of-Sale (POS) devices. Whilst the actual fraud losses are significant, of equal if not greater concern, is the resultant impact caused by high decline rates. False-positives (declining legitimate transactions) are a major problem and can account for as much as 90% of cross-border declines. This results in lost interchange fee revenue, high costs of fraud case-management and inconvenienced customers.
The ValidSoft platform detects fraudulent cross-border transactions but more importantly can do so without the collateral damage of high false-positive rates. Using the patent-pending Proximity Correlation Logic™ (PCL) for card-present transactions, ValidSoft can reduce cross-border false-positive rates to single digits, all in a completely invisible and real-time fashion, within the authorisation process itself. It requires no more than the cardholder having their registered mobile device with them and active when transacting at ATMs and POS devices abroad. It will not be contacted; there is no cost to the cardholder and the only visible sign of change is legitimate transactions will now be approved rather than declined.

Because this patent-pending solution has been granted a prestigious European Privacy Seal (EuroPriSe) for its processing model, it can be deployed on the basis of informed prior consent, removing the onerous requirement of explicit Opt-in. Because it operates on a carrier-grade platform, the solution can process hundreds of thousands of transactions per second. Once again the same platform and device used to protect the electronic commerce channels is used to transform international card-present fraud processing.

For more information on our VALid-POS^® solution, please dowload the following whitepapers:

VALid-POS^® – Cross Border
VALid-POS®- Value Proposition – Being at the Forefront of Payment Evolution

Domestic Card-present

Because it’s a different problem with different strategies required from cross-border card-present fraud, ValidSoft created the patent-pending Anonymous Correlation System™ (ACS), a neural-based solution that creates correlations between ATMs and POS devices and mobile networks, allowing the system to determine the probability of a genuine cardholder, with their mobile phone present and activated, being in the proximity of the ATM or POS device where the transaction is occurring. As with the cross-border model, the solution is totally invisible with no calls or costs to the cardholder. An issuer can choose to learn the correlations and then authenticate against every ATM or POS device in an entire country, or alternatively choose to concentrate on specific regions or merchant types, such as high-risk electrical or computer retailers.

Because the system is completely anonymous; it has no geographical knowledge of either the ATM/POS device or mobile network location, it is also covered by the European Privacy Seal (EuroPriSe) with the attendant benefits that brings to the issuing bank. And because the system does not use GPS, Lat/Long resolution, triangulation or other costly and time-consuming location-based technologies, it is capable of running in a real-time model, within the actual authorisation process.