The demand for instantaneous transactions has grown exponentially, with instant payments gaining traction as a preferred mode of financial interaction. As consumers and businesses embrace the speed and efficiency of instant payments, it becomes imperative to establish a secure environment that upholds trust and integrity.
Nicolas Muhadri, CEO of deep tech innovator Streammind, addresses the escalating challenges within the fintech landscape, particularly concerning the surge in instant payments and the rising spectre of fraud.
Here, he also explains how StreamMind’s technologies have been designed to offer a unique approach to fortifying financial integrity and trust.
The shift towards instant payments is reflected in the growth of credit transfers, which constituted 24 per cent of total transaction volume in Europe in 2021, accounting for 94 per cent of transaction value, according to a recent Strategy@report.
As the financial landscape accelerates towards the efficiency of instant payments, a growing concern surfaces – the surge in digital transactions has paved the way for fraudsters to exploit vulnerabilities, giving rise to instances of payment fraud and identity theft.
To address this pressing issue, the European Commission has proposed a proactive mandate, requiring payment service providers (PSPs) to implement IBAN-name checks.
This strategic initiative underscores the industry’s commitment to curbing fraudulent transactions. IBAN-name checks offer an additional layer of trust and security, validating the authenticity of payment account identifiers and account holders’ names, thereby ensuring transaction accuracy.
The proposal includes a requirement for PSPs to notify their customers when a discrepancy is detected between the name and the IBAN they have entered for a payee.
Guided by 15 years of research and development, StreamMind‘s journey has been characterised by a steadfast pursuit of innovative solutions to tackle the challenges posed by real-time payments and the escalating spectre of payment fraud.
This endeavour has culminated in the creation of our ‘LUCY’ technologies, seamlessly integrated into the architecture of SEPAmail — a secure messaging system founded on an open architecture.
StreamMind is proud to be the original software editor for SEPAmail.eu’s interbank technology provides a distinct advantage, allowing us to comprehend industry needs and pioneer groundbreaking solutions. This network connects hundreds of banks and companies across Europe and its services are used by millions of people every year.
Our LUCY DIAMOND service leverages SEPAmail’s DIAMOND service to cross-reference real-time bank account details. By marrying the power of SEPAmail with LUCY DIAMOND, StreamMind equips businesses with a potent tool to combat payment fraud and ensure data integrity during transactions.
The evolution of instant payments, coupled with the growing urgency to prevent fraud, has paved the way for LUCY DIAMOND’s seamless integration into the payment process. Our solution empowers users to validate the combination of IBAN and account holder’s name, fortifying security and fostering trust in every financial interaction.
Benefits include safeguarding against impersonation scams, counterfeit suppliers and fraudulent customers, among others. Beyond this pivotal protection, LUCY DIAMOND takes aim at minimising errors in accounting and customer or supplier information, thereby reinforcing the integrity of payment data.
Its open technology seamlessly integrates with existing systems, ensuring a smooth and efficient workflow. The service ensures instant results for each verification request, while its versatility shines through the ability to utilise three formats—web portal, API, and mobile (smartphone or tablet). Additionally, the verification outcomes are authenticated through the SEPAmail Diamond network.
LUCYPHONE, another pillar of our Lucy technologies, confronts the escalating menace of identity theft. As our lives become increasingly enmeshed in digital interfaces, the protection of personal information assumes paramount importance.
Leveraging the networks of mobile phone operators, LUCYPHONE performs identity verification based solely on an individual’s telephone number. This formidable solution furnishes businesses with the ability to access vital identifying information while effectively thwarting attempts at identity theft.
LUCYPHONE facilitates seamless access for businesses to a range of valuable insights and data related to telephone lines. This includes identifying details of the telephone line’s owner, comprehensive information about the telephone operator, and updates on any alterations in the phone’s activities—such as changes in the SIM card, IMEI number, or telephone number. Furthermore, LUCYPHONE provides access to subscription-related details, encompassing package specifics, prepaid card particulars, and subscription amounts.
The innovative prowess embedded in LUCYDIAMOND and LUCYPHONE not only empowers businesses to combat payment fraud and identity theft but also contributes to shoring up the data security infrastructure that underpins modern financial interactions.
The benefits of preventing payment fraud and identity theft extend far beyond the realm of financial institutions, reaching individuals and businesses alike. By implementing proactive measures such as IBAN-name checks and identity verification through technologies like LUCYPHONE, the financial ecosystem stands to reap substantial rewards. Enhanced customer trust emerges as a cornerstone of these efforts, instilling confidence in digital transactions and bolstering the reputation of financial institutions.
The ripple effect extends to individuals and businesses, who experience reduced financial losses and can engage in transactions with heightened peace of mind. As fraud prevention takes centre stage, the financial landscape becomes more resilient, fostering an environment that thrives on integrity, security and trust.