The Swedish company ZignSec are aiming high and have the vision to be the leading Verification Service Provider (VSP) in Europe. What does it mean to be a VSP? Markus Andersson, Chairman and co-founder of the company, explains. “When e-commerce really took off a few years ago, experts began to develop payment methods for e-merchants. Payment methods became numerous and thus difficult choices had to be made by by E-merchants. As a result Payment Service Providers (PSP) emerged. Since e-commerce is constantly increasing, the need for E-merchants, Financial institutions, Online Casinos and others to improve their authentication and verification methods have increased as well. “To help out with this, a real VSP – Verification Service Provider has now been launched – namely ZignSec.”
NFT Venture invested last fall in ZignSec. Johan Lundberg, CEO, confirms that there is great interest for this service (VSP). – When I’m out lecturing and making presentations about our portfolio companies, this is one of the companies that receive the most international attention.
Media daily writes about hijacked identities, card fraud, etc. There are a variety of methods to consider and possibly purchase. For example, BankID, Address Checks, searches in money laundering- & sanctions lists, Biometric, solutions, mobile one-time PIN-codes, etc. ZignSec, just as PSP’s previously made, collects the best authentication methods under one roof, and now offers these through its verification platform. For many small and medium sized companies, the cost is too high to protect them selves enough and it is also time consuming. With ZignSec they only need to sign one contract and integrate one API for the entire Nordic region and soon Europe.
Looking at it from a consumer’s perspective, the increased number of scams, identity hijacking, etc. has lead to a reduced reliance on commerce online. Recent statistics show that 28% of all Internet users do not want to use online banking or purchase online. The fear is that personal data will fall into the wrong hands (37%) and that Internet payments are insecure (35%). Due to this, new EBA Directive came, in 2015, with the aim to increase the demands for PSP´s, acquiring banks, e-merchants, etc. to improve security online. Therefore, the need for an effective verification platform, such as the one offered by ZignSec, is now nearly a must. According to the EBA directives e-merchants, financial institutions, etc. must now be able to demonstrate a range of measures. To mention a few;
• Consumer accounts protected only by username + password is not enough and must be supplemented with additional verification
• The number of login attempts per user must be limited
• A time limit on verifications must be set
• OTP-codes, shall only be valid a short period (maximum 5 minutes)
• Payment info, stored for so-called. One-Click shopping, should be terminated within a reasonable time, if the individual has not been recently active
• Transactions should be monitored to detect, prevent and block a fraud
• Fraud prevention systems should be capable of detecting suspicious transactions before a payment is carried out.
The system should also be able to read: Stolen card data, abnormal purchasing behaviour, Device Detection (IP) geolocation and IP-checks, etc. A risk assessment on the above and other values must be carried out and payments must also be handled separately