Giving Banks the Tools to Outpace Fraud | G+D and Netcetera | Money20/20 Europe

Giving banks the tools they need to outpace fraud.

APP fraud is on the rise but new technology and systems can still help banks and customers to stay safe.

In our latest Money20/20 interview with Giesecke+Devrient, Olivier Sery from G+D and Bernhard Binz from Netcetera, speak about the gaps in current security measures and the potential of passkeys and new technology to enhance authentication processes.

G+D together with its digital powerhouse Netcetera, are leading the charge in providing advanced authentication technologies and we hear what their collaboration brings to the table.

The fraud landscape in 2024

Fraud remains an ever-present threat in the financial sector, and as banking and payments transition into digital realms, the nature of these threats is becoming increasingly sophisticated. In the video above, Binz highlights that there are multiple factors contributing to the current fraud landscape.

Among the most prevalent threats is Authorized Push Payment (APP) fraud, which is pervasive globally and reportedly on the rise. This type of fraud typically starts with phishing or fake login sites, where attackers farm credentials and authentication information. This is followed by social engineering attacks that manipulate victims into making payments to fraudsters. These cases dominate the fraud scene, pushing companies to develop solutions that not only detect fraud but also minimize complexity and restrictions for customers. As Sery points out, the goal is to ensure end-users are well-informed and able to make the right decisions, particularly in verifying they are interacting with legitimate entities.

An interesting point about how things are changing surrounds work that has already been done in Europe to make things safer. The implementation of the Payment Services Directive 2 (PSD2) has been pivotal in enhancing security measures within the industry, particularly through Strong Customer Authentication (SCA) and Multi-Factor Authentication (MFA).

However, despite these advancements, gaps remain. Sery and Binz acknowledge that while PSD2 has helped maintain control over fraud, some elements of MFA are no longer as robust as they once were. The quest for 100% security is elusive, but there are ongoing efforts to fortify the registration process for apps and services, making it harder for fraudsters to exploit vulnerabilities.

Could Passkeys be the future of authentication?

One promising development in secure authentication is the use of passkeys. These are seen as a more sophisticated and secure alternative to traditional passwords, which Sery points out have become somewhat outdated. Passkeys are notable for their complexity and the potential for management through blockchain technology, which could lead to even stronger forms of authentication.

Financial institutions are increasingly adopting various types of passkeys, such as device-bound passkeys that remain on the user’s device, enhancing security during transactions. Netcetera is at the forefront of this innovation, constantly seeking to develop more secure authentication methods, particularly for e-commerce transactions.

In the interview we also hear about what G+D and their digital powerhouse Netcetera have to offer, leveraging their expertise to help the financial ecosystem stay ahead of fraudsters. Netcetera, for instance, provides cutting-edge authentication technology, including 3D Secure (3DS), digital identity solutions, and seamless onboarding processes. G+D, who Sery points out has been securing other forms of money for decades, is now extending its expertise to securing online and digital commerce. The collaboration between G+D and Netcetera is a powerful synergy, delivering essential tools and technologies that financial institutions need to combat fraud effectively.

It’s a great insight into this important and ever changing topic and another great addition to our series with G+D at Money20/20 Europe 2024.