Samsung Pay: Wider acceptance means bolder, faster, “tap and go” fraud
Even though I am somewhat of an Apple groupie, I couldn’t miss this week’s big announcement that Samsung Pay is soon to be the next mobile wallet launch promising to bring new benefits to consumers. Among the new benefits includes the promise that there will be wider acceptance at many more retail outlets than Apple Pay and an added ability to manage loyalty and gift cards. Samsung’s MST (Loop Pay, Magnetic Secure Transaction ) technology that is built into the new Galaxy 6 provides an easy tap-and go transaction virtually anywhere credit or debit cards are accepted. This should mean that as a consumer I do not have to “wonder” if my mobile wallet is an option. Now that is both really cool and convenient.
- Ensure you are risk scoring the card provisioning event; send any risky events to the call center.
- Ensure your call center has good voice biometric and authentication tools. These can prevent one fraudster from provisioning many cards to mobile phones where they may have the customer’s identity information.
- Score your tokenized transactions, in context of your provisioning; your fraud system should connect the dots.
- Ensure your fraud data models are tuned to track velocity – that includes knowing fraud patterns that are happening in rapid sequence.
- Remember that MST “tap and go” transactions are considered card present transactions for liability reasons.
- Educate your team at the bank, and know that your call center staff can be one of the best indicators of increasing fraud issues.
- Measure your fraud losses from day one, have an escalation plan in place, secure buy-in to the plan among key bank stakeholders, and practice a dry run.