Digital Identity Tracker: Why Banks Farm Out Mobile Security

As more Americans reach for their mobile devices when making purchases, providers are looking for new ways to secure smartphones.

According to industry research, mobile commerce now accounts for nearly a third of the U.S. economy, with sales via mobile devices contributing more than $104 billion to the economy. But all those digital dollars are attracting the attention of fraudsters, who are increasingly setting their sights on mobile targets. And, over the course of the past month, several security providers rolled out new mobile phone protections, designed to help provide security in the booming mobile economy.

For example, LG executives took to the stage at the Consumer Electronics Show (CES) 2017 in Las Vegas this month to announce a new partnership with security and human interface developer Goodix that will bring biometric features, including a new fingerprint sensor, to LG’s new K10 and Stylus 3 smartphones. Meanwhile, BIO-Key also had a busy week at CES, where the company unveiled a trio of new products bringing biometric security to physical devices.

Synaptics Incorporated also debuted a new multifactor biometric system. The platform, designed for smartphones, tablets and notebook PCs, combines fingerprint recognition with facial recognition software, allowing for a more secure and customizable authorization system.

Delivering safe sales

Digital and mobile-targeting fraudsters and other bad actors have also gotten the attention of financial institutions. The increase in digital theft has forced these companies to balance customer desire for convenient online and mobile banking features. For this month’s Digital Identity cover story, PYMNTS caught up with Don Bergal, CMO of Avoka, a company that provides digital sales and service transactions for companies in financial services, government and other large fields.

Bergal told PYMNTS that security concerns for financial institutions are largely the same as those of retailers. Banks are eager to earn their customers’ trust, and want consumers to feel safe when using their products or services. He also detailed how mobile devices impact financial security — and why they may be safer than desktop devices.

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About The Tracker

The PYMNTS.com Digital Identity Tracker, powered by Socure, is a forum for framing and addressing key issues and trends facing the entities charged with efficiently and securely identifying and granting permission to individuals to access, purchase, transact or otherwise confirm their identity.