Evolving Security and Fraud Management
American Express has announced the acquisition of InAuth in an effort to enhance its fraud-prevention and security capabilities.
The announcement follows last week's news that Visa had acquired Cardinal Commerce. As you might imagine from these two annoucnements, companies are becoming increasingly concerned about fraud and security and are shoring up their capabilities at a rapid pace.
InAuth’s technology is used by some of the world's largest financial institutions, banks, payment networks and merchants to reduce risk and help identify potential fraud utilizing its mobile-first device authentication capabilities.
The acquisition will provide further support to American Express’ existing data analytics and fraud prevention capabilities, which have enabled the company to achieve the lowest fraud rates in the industry. The acquisition also positions the company to capture new opportunities as more consumer activity – from payments to account origination and servicing – moves to digital channels. As commerce has increasingly shifted to online and mobile channels, so too has the risk of fraud.
"Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express,” said Anré Williams, President, Global Merchant Services & Loyalty Group at American Express. “We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security. This acquisition, along with Accertify and other significant investments we’ve made in data analytics and technology, will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”