American Express has acquired InAuth, a mobile device authentication and intelligence solutions provider of fraud prevention.
InAuth’s technology is used by some of the largest financial institutions, banks, payment networks and merchants to reduce risk and help identify potential fraud utilizing its mobile-first device authentication capabilities.
The acquisition complements and enhances American Express’ comprehensive data analytics and fraud prevention capabilities, which have enabled the company to achieve the lowest fraud rates in the industry.
The acquisition also positions the company to capture new opportunities as more consumer activity – from payments to account origination and servicing – moves to digital channels.
As commerce has increasingly shifted to online and mobile channels, so too has the risk of fraud. 70% of US merchants have experienced an increase in sales through online and mobile channels over the previous year, according to the 2016 American Express Digital Payments Security Survey. At the same time, 60% of merchants reported having experienced fraud from online and mobile sales.
“Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express,” comments Anré Williams, President, Global Merchant Services & Loyalty Group at American Express.
“We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security. This acquisition, along with Accertify and other significant investments we’ve made in data analytics and technology, will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”
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