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Fiserv (FISV) Boosts Authentication Services to Tackle Fraud
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Fiserv, Inc. yesterday announced the launch of two enhanced consumer authentication solutions, step-up authentication and identity verification, to help call centers counter card fraud.
Step-up authentication functions through a five-digit code sent via message or email, valid at the time of call. Identity verification provides real-time analysis by evaluating high-risk cardholder behavior within the interactive voice response (IVR) system. This activates protective action to reduce account takeover. Layered, multi-factor authentication helps generate caller identity and moves the information to other fraud applications.
According to Fiserv, overall fraud activities have touched a three-year high of $16.8 billion in 2017 with mean consumer expenses for the same at $102 per incident, which is twice than 2016. In the United States, account takeover loss of $5.1 billion in 2017 was more than three times the loss incurred in 2016.
Patrick Davie, vice president of Fiserv’s Product Strategy, Card Services stated, “With these two solutions, fraud exposure for financial institutions can be reduced, cardholders’ personal data is safeguarded and account takeover can be prevented before transactions at the point of sale occur.”
So far this year, shares of Fiserv have gained 21.5%, outperforming the 7.3% rise of Zacks S&P 500 Composite.
To Conclude
Considering the rapidly changing financial services industry with digitalization taking center stage, financial institutions have become more prone to fraud and malicious activities. Consequently, demand for authentication services is expected to increase, which, in turn, should aid uptake of Fiserv’s enhanced consumer authentication solutions.
Notably, the initial five-month trial period of step-up authentication witnessed more than $2 million in fraud savings. Identity verification, made available to Fiserv clients in the second quarter, successfully identified several fraud calls.
We believe that the newly introduced solutions will boost the company’s growing Payments segment. In the second quarter of 2018, the segment contributed around 59% to total revenues and grew 7.4% year over year to $837 million. Internal revenue growth was 5%.
Some better-ranked stocks in the broader Business Services sector include Genpact Limited (G - Free Report) , WEX Inc. (WEX - Free Report) and Total System Services, Inc. . All the stocks carry a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Genpact, WEX and Total System Services is 10%, 15% and 14.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Fiserv (FISV) Boosts Authentication Services to Tackle Fraud
Fiserv, Inc. yesterday announced the launch of two enhanced consumer authentication solutions, step-up authentication and identity verification, to help call centers counter card fraud.
Step-up authentication functions through a five-digit code sent via message or email, valid at the time of call. Identity verification provides real-time analysis by evaluating high-risk cardholder behavior within the interactive voice response (IVR) system. This activates protective action to reduce account takeover. Layered, multi-factor authentication helps generate caller identity and moves the information to other fraud applications.
According to Fiserv, overall fraud activities have touched a three-year high of $16.8 billion in 2017 with mean consumer expenses for the same at $102 per incident, which is twice than 2016. In the United States, account takeover loss of $5.1 billion in 2017 was more than three times the loss incurred in 2016.
Patrick Davie, vice president of Fiserv’s Product Strategy, Card Services stated, “With these two solutions, fraud exposure for financial institutions can be reduced, cardholders’ personal data is safeguarded and account takeover can be prevented before transactions at the point of sale occur.”
So far this year, shares of Fiserv have gained 21.5%, outperforming the 7.3% rise of Zacks S&P 500 Composite.
To Conclude
Considering the rapidly changing financial services industry with digitalization taking center stage, financial institutions have become more prone to fraud and malicious activities. Consequently, demand for authentication services is expected to increase, which, in turn, should aid uptake of Fiserv’s enhanced consumer authentication solutions.
Notably, the initial five-month trial period of step-up authentication witnessed more than $2 million in fraud savings. Identity verification, made available to Fiserv clients in the second quarter, successfully identified several fraud calls.
We believe that the newly introduced solutions will boost the company’s growing Payments segment. In the second quarter of 2018, the segment contributed around 59% to total revenues and grew 7.4% year over year to $837 million. Internal revenue growth was 5%.
Zacks Rank & Stocks to Consider
Currently, Fiserv carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Business Services sector include Genpact Limited (G - Free Report) , WEX Inc. (WEX - Free Report) and Total System Services, Inc. . All the stocks carry a Zacks Rank #2 (Buy).
The long-term expected EPS (three to five years) growth rate for Genpact, WEX and Total System Services is 10%, 15% and 14.6%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>