American Express has acquired InAuth to help
merchants and partners to identify potential fraud utilizing its mobile-first device authentication capabilities. 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.
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.
As commerce has increasingly shifted to online and mobile channels, so too has the risk of fraud. Seventy percent of U.S. 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.
Founded in 2011, InAuth helps clients identify risk, remove friction and reduce fraud in their digital channels. InAuth’s platform uses device authentication to enable clients to evaluate the potential risk of a digital transaction, whether it be a customer logging into their account on a mobile app or web browser, or making a purchase from a merchant’s website.
American Express currently uses InAuth’s technology as part of its broader fraud management capabilities, and InAuth’s services are also sold by Accertify, a subsidiary of American Express that is a leading provider of ecommerce fraud-management and chargeback solutions to merchants.
Going forward, InAuth will operate as a wholly-owned subsidiary of American Express. The acquisition follows an investment in InAuth made earlier this year by American Express Ventures, the strategic investment arm of American Express.
InAuth’s technology will extend the innovative capabilities that American Express has developed in its technology platforms to support a new generation of digital products, and will complement the robust suite of tools that it already provides to help merchants fight fraud and help protect consumers. These tools include SafeKey, Enhanced Authorization and Accertify, which helps merchants detect and prevent online fraud across all payment card networks.
American Express also offers a number of services and features to help Card Members monitor their account information and help prevent fraud at the point of sale, including one-click alerts to confirm charges via text, email and mobile app.
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