Payfont, the Edinburgh-based online identity protection business led by Dr David Lanc, has had its consumer-centric online identity security model extensively validated by a team led by internationally renowned Cybersecurity expert, Professor Lachlan MacKinnon of the University of Greenwich, London.
The evaluation took place throughout 2013. It proves statistically that, compared to existing bank and technology security for ecommerce and money transfer, Payfont's patented security model is over 99% more secure.
With a result like that, Payfont's approach represents the world's most secure online identity protection - by a country mile. The financial and social benefits of Payfont's identity protection for consumers, and fraud reduction for merchants and banks, are enormous. Payfont's validation at such breakthrough levels is good news for vulnerable consumers and merchants, as it comes on the back of UK card fraud this week reported as escalating 16% to 450m in 2013, an increase that is greater than headline online commerce rates.
Professor MacKinnon said:
"Currently, millions of transactions online in the UK are breached resulting in well over £3bn of identity fraud reported. In the US, it's over $21bn, with 1 adult every 3 seconds defrauded by identity theft. It's therefore a huge problem existing security models don't solve. We have rigorously evaluated the Payfont system and can prove statistically it is at least 99% more secure than any ecommerce payment or money transfer security in use today."
What makes Payfont unique and compelling is that the company claims Payfont is designed to work with bank systems and security in place today, allowing banks to leverage their existing technologies, channels and systems. That will add huge value immediately on adoption and help to deliver better returns on investment.
Payfont Chief Executive, Dr David Lanc said:
"Our security model is designed by experienced professionals across the banking, payments and money movement industry. It builds on what we have today, so has a great business case.
It puts the legitimate user in control when they buy goods or move money digitally.
You get an intuitive, unique experience. Your choices become quite literally unpredictable and your identity anonymous to others, countering two big causes of identity fraud the industry has failed to stop. We believe our patented behavioural biometric, now comprehensively validated as superior to what's in place today, is a global first."
The core proposition of Payfont is that it creates, in essence, what would be described as a "virtual vault" between the consumer and whomever they are transacting with online.
"Bank and industry online security today is such that we read news of global banks being fined $1.9bn by regulators for money laundering breaches because they are not judged to comprehensively monitor or prevent it. Online fraud rates are now reported to be outstripping growth in ecommerce, proving that existing security is not stopping identity fraud. After all, how can we be secure when the security meant to protect us actually protects transactions processed by fraudsters as it does today? Clearly, there's a gap in what we have and what we need to keep consumers and merchants safe online.
For around 1% of that huge fine, the global financial services industry could have via Payfont a realistic and relevant global counter to money laundering and identity fraud protection for ecommerce and online banking. It would pay back in a very short timescale, building trust and confidence with customers and regulators. It would also provide a stellar return for stockholders.
Lots of technologists and risk specialists in banks are working on fraud detection. Lots of marketers are working on the "consumer-centric" experience. By thinking differently, we've delivered a now validated transformation in identity protection, with the promise of vastly lower costs of operation and significant ease of use in one proposition. What business regulator, hard pressed merchant or vulnerable consumer wouldn't want that?
Breakthrough security like Payfont, which is designed to build on what's in place and give customers a better deal, is now available. We've made the adoption path as easy as is possible and are currently raising funds to build our production system, now our validation phase is successfully complete.
Early adopters will gain fantastic returns and fraudsters will ultimately find it easier to go elsewhere. After all, what CTO, CMO or CEO wants to face up to being the person who missed the boat and took the hit?"
Payfont's unique security approach is fully patented and validated, with further patents pending. It creates a unique identity for consumers that can be dynamically created and personalised from any combination of things including industry standard options and personalised methods involving pictures, codes, challenges, or even biometrics like voice recognition, if that's what the customer wants to use.
Professor MacKinnon concluded:
"Payfont provides far higher levels of customer identification accuracy and a huge improvement in security against fraudulent interception. It is ground-breaking, world-leading technology and I heartily recommend that online banks and payment organisations move to adopt it now."
"Ecommerce and online activity is now a part of our lifestyle, but online security systems at the likes of banks have not kept pace with the development of online commerce or the increasingly sophisticated fraudster. Payfont has created a simple to adopt, secure proposition that has been validated at the highest levels; it's up to the banks and large internet businesses to decide: do they want to stay put with existing security that isn't fit for purpose to protect their customers, their bottom line or their trust? Or do they want to adopt low cost, breakthrough approaches such as Payfont, designed by industry professionals for the industry."