Budgeting, Planning & Forecasting

Budgeting, Planning & Forecasting

December 29, 2011

ValidSoft Hopes to Cash In on Security Threats of Mobile Banking

ValidSoft, a subsidiary of Elephant Talk Communications Corp., says it is confident that 2012 will take the company to new highs as it is rightly positioned to cash in on the growing security threats faced by mobile banking industry.

Its confidence stems from the ability of its security solutions that offers to prevent fraud in online banking.

The banking software maker has cited two research reports to support its argument: First, Barclays Corporate’s prediction that consumer spending using mobile devices will jump 15-fold in the next decade. Second, Gartner’s (News - Alert) forecast that more than $429 billion of mobile banking transactions by 2015.

To realize its dream, ValidSoft has devised VALid-POS, the card-present fraud prevention solution. “We have now proven the efficacy of this product in a number of trials around the world, and have generated a lot of interest in the product from many issuing banks. We will focus on delivery of the service in 2012,” said the company in a statement.

The company says it is positioned to provide the security technology that will enable the use of mobile-banking, mobile payments and mobile-wallets to take off in a secure fashion.

2011 has seen a large increase in attacks aimed at the mobile phone, including phone-resident Trojans aimed squarely at the smart-phone as well as the relatively new concept of Pseudo Device Theft, including SIM Swap fraud. The latter is already proving to be a potentially huge target for fraudsters, as the rewards on offer are massive.

Card fraud remains a huge problem, with actual losses and the cost of fraud prevention, namely fraud operational costs, lost interchange revenue and disgruntled customers being a major cost item for banks.

These trends mean that payment and banking security technology is more vital than ever. For the expected explosion in the use of mobile devices for banking, payments and wallets to become a reality, a major requirement is that consumers, banks, and retailers have faith that these transactions are safe and secure.

In other news, Elephant Talk Communications Corporation recently announced that it has signed a contract with AirTouch Communications to provide a Carrier Grade Mobile Services Platform for AirTouch, under a recent agreement for 4G LTE (News - Alert) wireless carrier services that AirTouch executed with LightSquared. LightSquared, based in Reston, VA, is a wholesale carrier building a nationwide wireless broadband network.

Narayan Bhat is a contributing editor for TMCnet. To read more of Narayan’s articles, please visit his columnist page.

Edited by Jennifer Russell

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