Philipp Pointner, VP Product of digital ID verification experts Jumio, highlights key issues in CNP fraud, mobile banking and the sharing economy that are set to affect businesses in 2017, whilst looking back at 2016’s major trends to make insightful recommendations
As 2016 draws to a close, businesses are taking stock of a year that witnessed ever more data breaches and cybersecurity incidents, the continued development of digital and mobile banking, as well as initiatives to boost consumer trust in the Sharing Economy.
One thing that ties these three issues together is their reliance on security, specifically in the authentication and ID verification space. As we move into 2017, Philipp Pointner, VP Product of digital ID verification experts Jumio, outlines the opportunities and pitfalls for businesses operating in these areas, and how best to learn from 2016’s major trends:
- The EMV liability shift in the US was widely predicted to see a spike in CNP (Card not Present) fraud in the US and beyond. Figures from the end of Q2 2015 to Q1 2016 (which takes in six months of post-EMV activity) suggests that there has been a 137 percent rise in CNP fraud in the US. To put this into context, between 2014 and 2015 saw a mere 20 percent rise in CNP fraud.
- The global rise in data breaches is a key driver in the growth of fraud. FFA UK, the UK anti-fraud organisation stated that “financial fraud losses across payment cards, remote banking and cheques totalled £755.0 million in 2015, an increase of 26 percent compared to 2014. The rise across all fraud loss types during 2015 owes much to the growth of impersonation and deception scams, as well as sophisticated online attacks such as malware and data breaches.”
- With the US switch to EMV not even one-third completed, as more and more merchants adopt EMV terminals, this will force more and more fraudsters into the CNP space with a continued rise in CNP fraud.
- To fight this, merchants and banks will increasingly look towards biometrics to bolster verification with facial recognition software and ID scanning.
- Mobile Banking
- 70 percent of the UK population now use mobile banking. It is now the dominant form of bank interaction for the UK.
- There has been a corresponding rise in online only banking. Virgin Money, an online only bank is now the eighth largest lender in the UK, above both the Yorkshire Building Society and Clydesdale Bank, both long established institutions.
- The Second EU Payment Services Directive (PSD2) will have a significant impact on mobile banking in 2017. It is designed to, in the words of EU Commissioner Jonathan Hill, “ensure that electronic payments in Europe become more secure and more convenient for European shoppers.”
- This commitment to convenience and security will mean that banks will have to have strong but convenient authentication at the heart of their mobile banking strategies.
- With PSD2 due to come into force by 2019, banks will have to start planning for this in 2017.
- Sharing Economy
- At a value of $15bn per year, and predicted to reach $335bn in the next decade, the global sharing economy represents one of the largest and fastest growing markets in the world.
- The UK sector alone is set to climb to £9bn from £500m in the next ten years.
- A recent study by global online review community Trustpilot found that 39 percent of people worry that services provided through the sharing economy can’t be trusted as much as those through traditional outlets.
- British internet users are more likely to have their identity stolen than anywhere else in Europe and North America, with three types of fraud in operation: Impersonation, identity and account takeover.
- With the recent announcement of TrustSeal, Sharing Economy UK’s initiative to boost consumer trust by requiring businesses to meet a list of ‘Good Practice Principles’ relating to things such as identity verification, product transparency and customer service, the importance of using technology to secure authentication and verification has never been more important to businesses entering the sharing economy in 2017.
- There are already some measures in place, but traditional risk assessments can be time-consuming and costly for businesses, involving court visits and hard copies of customer records.
- EasyCar Club, for example, require a driver licence check and a video call to confirm identity. How much time could be saved through the use of up-to-date ID verification technology?
- Businesses in the sharing economy that optimise their security procedures in 2017 stand to gain a competitive advantage over their competitors.
- Andrew Saul, senior partner at international law firm Osborne Clarke, said he believed the sharing economy space would look entirely different in five years time: “Many of the issues currently being faced by companies will have been resolved. User reviews will be much more sophisticated and trust will be less of an issue,” he said.
- This makes it crucial for businesses to steal a march on the competition. There are several ways to secure a sharing economy business from ID fraud. The technology is out there to remove the risk of reputational and financial loss.
- Machine learning algorithms can pick up on digital footprints to highlight risky customers based on their previous actions.
- ID verification technology is a fast and convenient way to ensure that customers and hosts in the sharing economy are who they say they are. Good anti-fraud technology will operate on several levels, including ID and facial recognition.
Spain’s jobless hit four million for first time in five years as pandemic curbs bite
By Nathan Allen and Belén Carreño
MADRID (Reuters) – The number of jobless people in Spain rose above 4 million for the first time in five years in February, official data showed on Tuesday, as COVID-19 restrictions ravage the ailing economy.
Since the onset of the pandemic, Spain has lost more than 400,000 jobs, around two-thirds of them in the hospitality sector, which has struggled with limits on opening hours and capacity as well as an 80% slump in international tourism.
Jobless claims rose by 1.12% from a month earlier, or by 44,436 people to 4,008,789, Labour Ministry data showed, the fifth consecutive monthly increase in unemployment.
That number was 23.5% higher than in February 2020, the last month before the pandemic took hold in Spain.
“The rise in unemployment, caused by the third wave, is bad news, reflecting the structural flaws of the labour market that are accentuated by the pandemic,” Labour Minister Yolanda Diaz tweeted.
Restrictions vary sharply from region to region in Spain, with some shutting down all hospitality businesses, though Madrid has taken a particularly relaxed approach and kept bars and restaurants open.
A total of 30,211 positions were lost over the month, seasonally adjusted data from the Social Security Ministry showed. It was the first month more positions were closed than created since Spain emerged from its strict first-wave lockdown in May.
Still, the number of people supported by Spain’s ERTE furlough scheme across Spain fell by nearly 29,000 to 899,383 in February.
“These figures have remained more or less stable since September, indicating that the second and third waves of the pandemic have had a much smaller effect than the first in this regard,” the ministry said in a statement.
Hotels, bars and restaurants and air travel are the sectors with the highest proportion of furloughed workers, it added.
Tourism dependent regions like the Canary and Balearic Islands have been particularly hard hit, with the workforce contracting by more than 6% since last February in both archipelagos.
The last time the number of jobless in Spain hit 4 million was in April 2016.
(Reporting by Anita Kobylinska, Nathan Allen and Belén Carreño, Editing by Inti Landauro, Kirsten Donovan and Philippa Fletcher)
Pandemic ‘shecession’ reverses women’s workplace gains
By Anuradha Nagaraj
(Thomson Reuters Foundation) – The coronavirus pandemic reversed women’s workplace gains in many of the world’s wealthiest countries as the burden of childcare rose and female-dominated sectors shed jobs, according to research released on Tuesday.
Women were more likely than men to lose their jobs in 17 of the 24 rich countries where unemployment rose last year, according to the latest annual PricewaterhouseCoopers (PwC) Women in Work Index.
Jobs in female-dominated sectors like marketing and communications were more likely to be lost than roles in finance, which are more likely to be held by men, said the report, calling the slowdown a “shecession”.
Meanwhile, women were spending on average 7.7 more hours a week than men on unpaid childcare, a “second shift” that is nearly the equivalent of a full-time job and risks forcing some out of paid work altogether, it found.
“Although jobs will return when economies bounce back, they will not necessarily be the same jobs,” said Larice Stielow, senior economist at PwC.
“If we don’t have policies in place to directly address the unequal burden of care, and to enable more women to enter jobs in growing sectors of the economy, women will return to fewer hours, lower-skilled, and lower paid jobs.”
The report, which looked at 33 countries in the Organisation for Economic Co-operation and Development (OECD) club of rich nations, said progress towards gender equality at work would not begin to recover until 2022.
Even then, the pace of progress would need to double if rich countries were to make up the losses by 2030, it said, calling on governments and businesses to improve access to growth sectors such as artificial intelligence and renewable energy.
Laura Hinton, chief people officer at PwC, said it was “paramount that gender pay gap reporting is prioritised, with targeted action plans put in place as businesses focus on building back better and fairer”.
Britain has required employers with more than 250 staff to submit gender pay gap figures every year since 2017 in a bid to reduce pay disparities, but last year it suspended the requirement due to the coronavirus pandemic.
(Reporting by Anuradha Nagaraj @AnuraNagaraj; Editing by Claire Cozens. Please credit the Thomson Reuters Foundation, the charitable arm of Thomson Reuters, that covers the lives of people around the world who struggle to live freely or fairly. Visit http://news.trust.org)
German January exports to UK fell 30% year-on-year as Brexit hit – Stats Office
BERLIN (Reuters) – German exports to the United Kingdom fell by 30% year-on-year in January “due to Brexit effects”, preliminary trade figures released by the Federal Statistics Office on Tuesday showed.
In 2020, German exports to the UK fell by 15.5% compared to 2019, recording the biggest year-on-year decline since the financial and economic crisis in 2009, when they fell by 17.0%, the Office said.
“Since 2016 – the year of the Brexit referendum – German exports to the UK have steadily declined,” the Office said in a statement.
In 2015 German exports to the UK amounted to 89.0 billion euros. In 2020, German they totalled 66.9 billion euros.
Imports to Germany from the UK totalled 34.7 billion euros in 2020, down 9.6 % compared to 2019.
(Reporting by Paul Carrel; Editing by Madeline Chambers)
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