Transaction Security

CEO Interviews
Reed Taussig, ThreatMetrix (cont.)
“The rapidly
evolving global
and mobile world
that we live in will
generate rapidly
increasing demand
for private, passive
and fully tokenized
authentication
systems that can
be put into place
without creating
undue customer
friction and can be
done so at a
reasonable cost.”
In the payments space specifically, how does ThreatMetrix interact with payment-related security technologies such as EMV, 3-D
Secure and Tokenization?
The introduction of EMV cards in the United States will lead to a shift from in-store credit card fraud to online credit card fraud in a similar
manner as has been already demonstrated in Europe. This will increase the demand for ThreatMetrix services which is good for our
business.
With respect to 3-D Secure, ThreatMetrix is already working with several of the major card brands to provide passive two-factor authentication
for the purpose of reducing the historical online friction associated with 3-D Secure solutions so as to improve overall adoption of 3-D Secure
offerings. This is a positive move for the industry in that 3-D Secure solutions are an effective way to reduce CNP fraud.
With respect to tokenization ThreatMetrix embraced this concept with actual products delivered several years ago. The end result is the
ThreatMetrix Digital Identity Network. Privacy across the internet is governed by law and the consequences of breeching a person’s
confidential information will continue to be more stringently enforced as time goes on.
Where is ThreatMetrix headed over the next 5 years—what additional products and services does the Company intend to add?
I would rather not comment on our product roadmap for competitive reasons. I will say that ThreatMetrix is engaged in a global business
across several existing and new vertical markets and that we believe that the company will continue to rapidly grow for the foreseeable future.
Are there other areas of transaction security that you think are ripe for innovation?
Online security is only about authenticating the actual identity of the person who is executing a transaction. Nothing else really matters. The
rapidly evolving global and mobile world that we live in, (and I refer to mobile both in terms of mobile devices as well as the mobility of the
workforce itself), will generate rapidly increasing demand for private, passive and fully tokenized authentication systems that can be put into
place without creating undue customer friction and can be done so at a reasonable cost. Shared global intelligence is the most effective tool
available to all companies that offer online services and products to both consumers and employees in order to safely establish true identities.
Thank you, Reed.
50