American Express, widely known as AmEx has acquired a mobile security firm named InAuth for an undisclosed amount. The purchase was carried out by AmEx in a bid to boost the multi-layerd strategy of its mobile banking services to fight cyber fraud.
American Express has already made a recent announcement that it’s planning to enhance its comprehensive data analytics and fraud prevention capabilities which will help in achieving lowest fraud rates in the industry.Â
These days commerce has widely shifted to mobile channels witnessing a proportionate growth in online fraud.
As per American Express Digital Payments Security Survey of 2016, 79% of US merchants have experienced an increase in online sales, especially through mobile channels. At the same time, the same survey concludes that over 60 percent of merchants have also experienced fraud from online and mobile sales. A majority of the fraud was witnessed when cyber criminals tried to personify the merchant’s payment gateway for fraudulent transactions.
In order to build a trust among its consumers, AmEX has decided to acquire InAuth which will help clients identify risk, remove friction and reduce fraud in the digital channels.
Till September this year, American Express was using InAuth’s technology as a service offered by a technology partner. From early next year, the America-based multinational financial services provider is in a plan to use InAuth as a technological resource having broader fraud management capabilities.
InAuth plans to present its cyber security capabilities to AmEx to develop a new generation of digital products which will help merchants fight fraud and help protect consumers.
Massachusetts based InAuth offers mobile device authentication and intelligence solutions and has a broader client network. Many of the world’s leading banks, financial institutions and payments networks offering gateway services are among its clientele list.
