American Express Acquires InAuth to Enhance Mobile Fraud Prevention
American Express recently acquired mobile device authentication company InAuth for an undisclosed amount of money. AmEx will use InAuth technology and future innovations from the group to improve its fraud prevention and mobile security services.
InAuth was founded in 2011. Their software allows clients to assess the fraud risk of an online or mobile transaction, and prevent high-risk transactions from taking place. American Express already uses part of this technology within their fraud management framework, but they will be able to apply it more aggressively now that they own the company.
According to a digital payments security survey American Express released in October, 48% of consumers who shop online have experienced payment fraud, and 40% of consumers believed that online shopping had a higher risk of fraud than shopping in stores. Increased fraud prevention solutions such as the ones available through InAuth could lower those numbers tremendously and give consumers a better sense of security when shopping on the web. Merchants who participated in the survey said 31% of customers abandon their carts online before completing their transactions.
American Express made an investment in InAuth earlier this year to fuel the company’s innovations prior to the acquisition. AmEx says InAuth’s technology will be used to enhance the tools it already provides to help merchants fight fraud and protect customers, which include SafeKey, Accertify and Enhanced Authorization.