Merchants won an extension to comply with PSD2’s new customer authentication rules, but as new rules for issuers go into effect next week, TSYS is rolling out tools that aim to do double duty.
TSYS has introduced a platform for its European card-issuing customers to ensure strong authentication is in place for any digital account services, enabling compliance with provisions of PSD2 as of Sept. 14, 2019, as required.
The regulation gave TSYS an incentive to broadly redesign its authentication platform so it can more easily plug in different fraud-technology providers’ services, as needed, to battle the rising threat of account takeovers and synthetic fraud, the company announced Thursday.
TSYS' new platform leverages machine learning to analyze account activity in real time, ensuring strong authentication of customers originating accounts, updating customer profiles, changing passwords or making a purchase, in compliance with PSD2's strong customer authentication rules for issuers.
The new authentication platform pulls technology from key fraud-prevention partners including Featurespace,
“We’re not attempting to become the industry leader in biometrics, so we’ve partnered with providers of technology to ensure strong authentication for multiple purposes,” said Justin Griggs, senior vice president of product strategy and commercialization for TSYS’ issuer solutions.
“For all digital servicing and account interactions, TSYS issuers will be protected through strong authentication, and our platform now has a wider range of tools to tackle account takeover fraud, and eventually synthetic fraud,” Griggs said.
The new authentication service will be extended to North American issuers next year, he said.
“E-commerce fraud remains a major threat for merchants and for issuers, but as fraud becomes more sophisticated we’re also seeing an increase in account takeover fraud, where losses can be quick and devastating, and our new platform is designed to protect against it from multiple directions,” Griggs said.
