Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

Sphonic platform launches to help online merchants reduce fraud

Start-up aims to offer a vendor agnostic data hub where merchants select the third party services

Article comments

A new middleware technology platform has launched to help e-commerce and m-commerce merchants manage the risk of ‘consumer-not-present’ transactions and reduce fraud.

Known as Sphonic, the service acts as a channel between an organisation and multiple third-party vendor services in the fields of identity and verification, credit agencies, device fingerprinting, IP geo location, email and domain profiling, web tracking, PEP/Sanction, payment instrument verification and analytics.

Merchants can select the third party vendor services they feel will help reduce the risk of fraud, and Sphonic acts as the middle man, constantly researching and adding vendors to its network and allowing clients instant access to new products as they emerge.

“We're charging a pence-per-click fee to access our network and not build it yourself,” said chief product officer Andy Lee, speaking to Techworld. “In that sense we're just a technical conduit, so all the merchants can access the data that they would access anyway if they coded directly to these vendors and contracted with them.”

Lee explained that banks have historically worked to a very rigid model, whereby customers' identities are verified using the electoral roll and companies like Equifax and Experian. However, this completely misses the whole concept of consumer-not-present risk.

“If someone applied over the phone with my name, address and date of birth they would get a loan. It would pass the existing rules,” he said.

Sphonic collects relevant data from all these various third party services and uses that data to build a complete profile of the user, based on their personal information, credit rating and web history. This method of identification can be as secure as physical tokens issued by banks for two-factor authentication, according to the company.

“It's about significant data. Instead of having 1,000 data items that you run complex rules over, only return significant data,” said Lee.

“So is it significant that an email address is valid? Probably not. Is is significant that an email address was created yesterday? Well that's highly significant because a fraudster stealing my identity would probably set up an email in my name.”

The Sphonic platform is written in the Scala programming language, meaning that it is all open source. It is built using social media technologies rather than the Microsoft programmes traditionally used by mainstream financial services companies.

“E-commerce and m-commerce have been nothing more than an interface over existing technologies. We're actually building a product that's fit for purpose for the future,” said Lee.

“The next generation of financially active people don't even use emails; it's all social media, they all expect things to work. This is what we've tried to bring to the table.”



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *