MasterCard, Visa Invest in Enhanced Security and Fraud Prevention
Feb. 16, 2015
In separate announcements on Thursday and Friday, Visa and MasterCard revealed they are devoting more resources to security and fraud prevention.
The day before President Obama signed an executive order to promote more information sharing to thwart cyberattacks, MasterCard said it will sink $20 million into a variety of initiatives to protect its issuers and retailers. The first, launching this spring, will be the implementation of the MasterCard Safety Net—an “independent layer of security on top of the tools and policies of financial institutions.”
The company also plans a pilot with Mountain View, Calif.-based First Tech Federal Credit Union to provide stronger authentication through a combination of biometrics, including facial and voice recognition and fingerprint matching.
And Visa, which launched tokenization for in-store and in-app mobile payments in conjunction with the Apple Pay launch in September, will expand the Visa Token Service this year to “a wide variety of devices platforms and apps.” The company said it plans to tokenize all online transactions initiated with Visa Checkout , which Visa said currently is deployed by 110 merchants worldwide, and will roll tokenization out to “leading device manufacturers and technology companies” this year.
“Removing card account numbers from the processing and storage of payments represents one of the most innovative and promising technologies we’ve seen in decades,” said Visa CEO Charlie Scharf.