With the Covid-19 pandemic accelerating the everyday use of mobile payment transactions, companies like Ekata who provide real-time dynamic identity verification have been the center of building digital trust and combating fraud. Ekata uses their own proprietary identity graph and network to accurately verify the integrity of any digital transaction in just 100 milliseconds.
This shift to a digital world has opened the eyes of many financial technology companies who have drastically increased their payment security and fraud detection in order to secure the billions of digital transactions that they process. It’s no surprise that Mastercard is set to acquire Ekata for $850 million, only their 6th acquisition over $100 million as they continue to develop their identity security and privacy efforts.
In the world we live in today, credit cards are the most common use of payment, and fraud is becoming an increasingly larger and more worrisome problem.
- In 2018, there was $9.47 billion in illegal credit card transactions.
- Fraudulent transactions were up 35% in April 2020 due to the pandemic.
- Card-not-present (CNP) transactions which occur over the phone or online are the most prone to fraud
- 33% of millennials have been a victim of some type of credit card fraud
With Mastercard powering over one billion transactions every day, they are no stranger to cyber attacks, and security and fraud identification is at the cornerstone of their business. With this acquisition of Ekata, they are looking to provide a single stop for any company’s or bank’s data or payment needs with the hopes of severely reducing the amount of credit card identity fraud that goes on today.
While there is certainly a long way to go before we can truly minimize digital fraud, this year alone has seen over $835 million in venture capital funding of identity verification companies and shows a promising future for the nearly one third of Americans who have fallen a victim to credit card fraud.
-Nitin Subramanian ‘24