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4/25/2014
12:06 PM
Pat Carroll
Pat Carroll
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Mobile Commerce Success Depends On Mobile Currencies

Digital currencies are a "killer app" for mobile commerce. We must get security and regulations right.

featuring short-duration speech. A typical mobile payment deployment, for example, would use a simple text-dependent model comprising a prompted short phrase or random number.

Voice biometrics is also the strongest form of authentication available, because it addresses multiple fraud vectors with a single check. These vectors include call redirect (also known as SIM swap fraud), device takeover, and, most importantly, voice blacklist checking, the ability to compare a voiceprint in real time with a known database of fraudsters' voiceprints. In addition, voice-based transaction verification can be used to overcome sophisticated fraud vectors such as man-in-the-middle and man-in-the-browser attacks.

Location checking can also be performed in conjunction. This can range from country-level analysis down to a 50-meter radius, which is essential for mobile-present transactions at the ATM or point of sale. Likewise, device recognition, another layer of invisible authentication, can be performed in real time, providing contextual information into the voice biometrics engine or, alternatively, operating as a standalone authentication layer.

The problem of security then shifts to user enrollment and authentication, verification, validation, and transmission. The technology is available today to solve these core issues, so the ball is in the payment industry's court.

On the matter of industry cooperation, regulation, and oversight, I am delighted to report that the first annual meeting of the Digital Asset Transfer Authority (DATA) was held April 9 in Washington, DC.

The DATA annual meeting provides an opportunity for digital asset companies and related organizations to chart the year ahead in digital currency, among other areas. Sessions and workshops focus on issues pertinent to the digital asset industry, including development of best practices, standards and regulatory issues, economic development opportunities, industry leadership, and international considerations. DATA has partnered with the International Finance Corporation (IFC) and the Council on Foreign Relations (CFR) to provide in-depth examination and discussion of critical issues affecting the digital asset industry. At the meeting, some of the foremost minds in virtual currencies gathered to discuss many of the issues I mentioned earlier.

I'm looking forward to reporting on the practical developments this unique opportunity will generate and to sharing such plans with InformationWeek readers in the weeks and months ahead.

As enterprises work on mobile commerce and mobility in general, remember this: Convenience without security is like swimming naked. And as Warren Buffet once said, "It's only when the tide goes out that you find out who is swimming naked." It is possible to combine the highest levels of security with the ultimate in user convenience and do it in a way that is, for the most part, invisible.

What do Uber, Bank of America, and Walgreens have to do with your mobile app strategy? Find out in the new Maximizing Mobility issue of InformationWeek Tech Digest.

Pat Carroll is the executive chairman and founder of ValidSoft, a global supplier of cybersecurity and transaction authentication solutions utilized by banks, financial services companies, and governments to secure and authorize payment transactions. He has more than 25 years ... View Full Bio

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SachinEE
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SachinEE,
User Rank: Ninja
4/29/2014 | 3:25:07 PM
Re: Re : Mobile Commerce Success Depends On Mobile Currencies
Since their introduction, bitcoins have attracted a lot of attention both from the people that use them and those that do not alike. Though there have been positive feedbacks from people that have tried using the bitcoins in the past, it is unfortunate that the negative stories associated with this virtual currency have been the ones that have received the greatest attention. In particular, the stories indicating that bitcoins can and have been used for money laundering purposes are rather worrying so I think that a lot will have to be done to increase user confidence in the currency before it can receive large scale adoption throughout the world.
SachinEE
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SachinEE,
User Rank: Ninja
4/29/2014 | 3:22:07 PM
Re : Mobile Commerce Success Depends On Mobile Currencies
Am not an expert in online trading, not by a long shot, but I am one of millions of people around the world who carry out a significant proportion of our total financial transactions online. I have also been following very keenly the stories and developments that have surrounded BTC, which is the most popular virtual currency at the moment (though probably not the most widely used), and from what I have seen is that the greatest impediment to the growth of virtual currencies is the lack of trust between the providers of the currencies and the people that are meant to use them in the long run.
petey
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petey,
User Rank: Strategist
4/28/2014 | 9:07:52 AM
niche play
No offense but I think bitcoin is a solution is search of a problem. Regardless of whether it becomes mainstream, there exists a real need to securitize and streamline economic transactions. The IRS loves to find new sources of income so I'm not sure just because the IRS recognizes something as an asset indicates it is the new normal. I admire your enthusiasm but remain highly skeptical this will be anything more than a niche play.
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