Mastercard has introduced improvements to its Identity Check program, providing an added layer of security for South African cardholders. Just in time for Black Friday and the holiday shopping season, the upgrade aims to address rising fraud concerns, particularly card-not-present (CNP) fraud, which accounted for 76.9% of gross fraud losses on South African-issued credit cards in 2022.
The enhanced Identity Check program uses the 3-D Secure 2.0 protocol to deliver advanced verification during online transactions. One key feature is the use of biometric verification, such as facial recognition and fingerprint scanning, replacing traditional passwords to offer a seamless, low-friction checkout experience. This is particularly beneficial for e-commerce, where online payment fraud remains a concern.
Andries Maritz, Principal Product Manager at Entersekt, noted the importance of balancing security with convenience: “The new initiative integrates technologies like AI for risk-based authentication, enabling a smoother experience for cardholders.”
Mastercard’s improvements also focus on reducing friction during low-risk transactions, where authentication happens automatically without additional prompts. For high-risk transactions, issuers are required to provide biometric-enabled devices for secure authentication, reducing the need for SMS or email-based multi-factor authentication.
Compared to previous methods, biometric authentication has led to a 32% reduction in fraud cases, as reported by issuers.
“We know that the previous step-up authentication methods can slow down the checkout process and frustrate cardholders, often leading to cart abandonment and lost sales. By turning to biometrics, online shoppers can quickly and easily authenticate their identity by using their face or fingerprint, which is securely stored on their devices, minimizing the chance of it being hacked or misused. This isn’t just faster, but it eliminates the risks created by weak or stolen passwords,” Maritz explains.
“While the deadlines allow a phased approach, the benefits of implementing the updates as soon as possible are compelling. Issuers would do well to support merchants’ efforts to maximize retail holiday opportunities like Black Friday and the festive season.
The move comes as Mastercard continues to collaborate with industry partners, including Entersekt, to ensure a secure and user-friendly experience for consumers, especially ahead of the busy retail season.
Maritz emphasized that early adoption of these updates could significantly enhance security, improve approval rates, and reduce operational costs for issuers.
“Dynamic risk-based authentication in a modern ecosystem is more than a long list of static rules. Transaction risk profiles are adaptive, contextualized, and must also be compliant with regulations. Despite the adaptive nature of these rules, Entersekt solutions still give issuers full control over the system behavior with the best available data. Fraud prevention has become incredibly complex, making it more essential for organizations to work with industry leaders like Mastercard as well as authentication partners who have the global experience to tackle new challenges as they emerge,” Maritz advises.
Mastercard’s initiative is a critical step in safeguarding online payments in South Africa as the digital economy continues to grow.