Fraud and Security Concerns Push Industry Further into the Spotlight
With the influx of high profile digital data breaches in the past year, businesses and consumers alike have grown increasingly concerned over the amount of sensitive personal information at risk during online and mobile transactions. As attacks and fraud rapidly evolve and put hundreds of millions of consumers’ identities at risk, the market is seeing swift adoption of solutions to address these growing security issues. A new MarketsandMarkets[i] report predicts the global identity and access management market will be worth $18.3B by 2019 and, according to findings from a recent CrunchBasepoll[ii], identity management was identified as the industry expected to see the greatest growth in 2015, at a large margin of more than four to one over other burgeoning industries in the survey.
“The frequency of security breaches and surge in related trends, like identity theft, have increased awareness of more effective methods of online authentication and identity management,” said Daniel Mattes, founder and CEO of Jumio. “While consumers previously may have been willing to accept a certain degree of risk when it came to online and mobile transactions, we’re at a tipping point at which companies need to go to greater lengths to protect their customers or risk losing their business as the users themselves demand more security.”
Fraud is increasing not only in prevalence but also in expense to merchants as well – merchants paid more per dollar of fraud in 2014 ($3.08) than they did in 2013 ($2.79), driven by the increased adoption of self-service and mobile transactions. Not only are mobile transactions more susceptible to fraud, mobile-channel fraud costs merchants more than any other channel — $3.34 per dollar of fraud losses compared with “other” channels (including mail and telephone).[iii]
In addition to, and as a result of, recent security violations, new kinds of fraud built from stolen data have also emerged, making it even more difficult to verify identities through traditional means of authentication, further driving the growing identity management market to the forefront. According to Javelin Research[iv], someone whose information is revealed as part of an online data breach becomes 9.5 times more likely to have their identity stolen.
Synthetic identity fraud, which can use stolen data to falsify identities, is on the rise as hackers can use data exposed during a breach – from passwords to card numbers – to create new identities. Synthetic identity theft now accounts for nearly 85% of the more than 16 million ID thefts in the U.S. each year finds the Federal Trade Commission.[v] These sophisticated schemes that grow increasingly harder to combat with traditional means of identity verification have left the market ripe for third-party vendors and solutions.
“I think it’s clear there’s a lot more interest these days in delivering identity management as a service because it’s a lot less complex,” said Garrett Bekker, senior analyst with 451 Research, in a recent interview. “You can hand off a lot of the complexity to the service provider and you don’t have to deal with it.”
[i]MarketsandMarkets Research, “Identity and Access Management Market by Deployments (On-premise, Cloud IAM), by Components (Provisioning, Directory, SSO, Advanced Authentication, Password Management, Audit, Compliance & Governance), by Organization Size – Global Forecast to 2019” February 2015
[ii]Crunchbase “In which of these markets do you expect to see the greatest growth in 2015?” January 2015
[iii] LexisNexis Risk Solutions “True Cost of Fraud mCommerce,” January 2015
[iv] Javelin Strategy, “2012 Identity Fraud Industry Report: Social Media and Mobile Forming the New Fraud Frontier.” 2012
[v] Federal Trade Commission, “The Changing Face of Identity Theft”
Aston Martin says back on the road to profitability after 2020 loss
By Costas Pitas
LONDON (Reuters) – Aston Martin expects to almost double sales and move back towards profitability this year after sinking deeper into the red in 2020, when the luxury carmaker was hit by the pandemic, changed its boss and was forced to raise cash.
The British company’s shares jumped 9% in early Thursday trading after it kept a forecast for around 6,000 sales to dealers this year as new management turns around its performance.
The carmaker of choice for fictional secret agent James Bond has had a tough time since floating in 2018, as it failed to meet expectations and burnt through cash, prompting it to seek fresh investment from billionaire Executive Chairman Lawrence Stroll.
The firm made a 466-million pound ($660 million) loss last year, compared with a 120 million pound loss in 2019, as sales to dealers fell by 42% to 3,394 vehicles, hit by the closure of showrooms and factories due to COVID-19.
For 2021, it expects “to see the first steps towards improved profitability” but is still likely to post a pre-tax loss, the carmaker said.
“I am extremely pleased with the progress to date despite operating in these most challenging of times,” Stroll said.
Aston said demand for its first sport utility vehicle, the DBX, which rolled off the production line at its Welsh plant in 2020, was strong in a lucrative segment of the market it entered to widen its appeal.
The model accounted for 1,516 of deliveries to dealers last year and the company expects further growth in its first full-year of sales, including in the key market of China, where rivals such as Bentley are also seeing high demand.
“We had not even a half-year DBX production in wholesome so probably we are going to see over-proportional growth in China,” Chief Executive Tobias Moers, who took over in August, told Reuters.
($1 = 0.7065 pounds)
(Reporting by Costas Pitas. Editing by Estelle Shirbon and Mark Potter)
Oil prices hit 11-month highs on tighter supplies, Fed assurance on low rates
By Florence Tan
SINGAPORE (Reuters) – Oil prices rose for a fourth straight session on Thursday to the highest levels in more than 11 months, underpinned by monetary easing policies and lower crude production in the United States.
Brent crude futures for April gained 19 cents, 0.3%, to $67.23 a barrel by 0400 GMT, while U.S. West Texas Intermediate crude for April was at $63.30 a barrel, up 8 cents, 0.1%.
Both contracts touched their highest since January earlier in the session with Brent at $67.44 and WTI at $63.67.
An assurance from the U.S. Federal Reserve that interest rates would stay low for a while boosted investors’ risk appetite and global financial markets.
“Comments from Fed Chairman, Jerome Powell, earlier in the week relating to the need for monetary policy to remain accommodative have probably helped, but sentiment in the oil market has also become more bullish, with expectations for a tightening oil balance,” ING analysts said in a note.
A rare winter storm in Texas has caused U.S. crude production to drop by more than 10%, or 1 million barrels per day (bpd) last week, the Energy Information Administration said. [EIA/S]
Fuel supplies in the world’s largest oil consumer could also tighten as its refinery crude inputs had dropped to the lowest since September 2008.
The Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, is due to meet on March 4.
The group will discuss a modest easing of oil supply curbs from April given a recovery in prices, OPEC+ sources said, although some suggest holding steady for now given the risk of new setbacks in the battle against the pandemic.
Extra voluntary cuts by Saudi Arabia in February and March have tightened global supplies and supported prices.
(Reporting by Florence Tan)
Australian media reforms pass parliament after last-ditch changes
By Colin Packham and Swati Pandey
CANBERRA (Reuters) – The Australian parliament on Thursday passed a new law designed to force Alphabet Inc’s Google and Facebook Inc to pay media companies for content used on their platforms in reforms that could be replicated in other countries.
Australia will be the first country where a government arbitrator will decide the price to be paid by the tech giants if commercial negotiations with local news outlets fail.
The legislation was watered down, however, at the last minute after a standoff between the government and Facebook culminated in the social media company blocking all news for Australian users.
Subsequent amendments to the bill included giving the government the discretion to release Facebook or Google from the arbitration process if they prove they have made a “significant contribution” to the Australian news industry.
Some lawmakers and publishers have warned that could unfairly leave smaller media companies out in the cold, but both the government and Facebook have claimed the revised legislation as a win.
“The code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public-interest journalism in Australia,” Treasurer Josh Frydenberg and Communications Minister Paul Fletcher said in a joint statement on Thursday.
The progress of the legislation has been closely watched around the world as countries including Canada and Britain consider similar steps to rein in the dominant tech platforms.
The revised code, which also includes a longer period for the tech companies to strike deals with media companies before the state intervenes, will be reviewed within one year of its commencement, the statement said. It did not provide a start date.
The legislation does not specifically name Facebook or Google. Frydenberg said earlier this week he will wait for the tech giants to strike commercial deals with media companies before deciding whether to compel both to do so under the new law.
Google has struck a series of deals with publishers, including a global content arrangement with News Corp, after earlier threatening to withdraw its search engine from Australia over the laws.
Several media companies, including Seven West Media, Nine Entertainment and the Australian Broadcasting Corp have said they are in talks with Facebook.
Representatives for both Google and Facebook did not immediately respond to requests from Reuters for comment on Thursday.
(Reporting by Colin Packham in Canberra and Swati Pandey in Sydney; Writing by Jonathan Barrett; Editing by Leslie Adler, Stephen Coates and Jane Wardell)
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