March 30, 2017 — Acquisition Underscores Significance of CNP Fraud Prevention
CardNotPresent.com reacts to the announcement that Mastercard has entered an agreement to acquire NuData.
Mastercard yesterday announced it agreed to acquire antifraud technology provider NuData Security. The Vancouver-based company, which specializes in using behavioral biometrics to authenticate the identity of online users, will provide Mastercard, its merchants and its issuers an additional layer of fraud protection as an increasing number of transactions happen online and as CNP fraud rises subsequent to the ongoing U.S. EMV migration.
Along with Visa’s acquisition of CardinalCommerce, announced in December, Mastercard’s deal for NuData signaled that not only is CNP fraud an increasingly important area for merchants and banks, it also offers some protection against a type of fraud with which they are increasingly concerned. Both NuData and Cardinal focus on authenticating users’ identity at the account level rather than rooting out fraud at the transactional level. This follows from the kind of information being stolen and employed in CNP fraud—notably personal information and password/login combinations that can be used to create or takeover accounts.
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