A 360-Degree Look at Retail Security in 2019

By Nicole Leinbach Reyhle

As commerce evolves, so do the security demands that drive customer behavior. In 2019, merchants can – and should – expect these demands to be stronger than ever, and must position themselves to be at the forefront of meeting these demands.

Among the factors to consider are the increasing popularity of mobile payments, how cyber criminals are becoming savvier than ever and how stronger user authentication is a must for merchants to stay protected.

Keeping these factors in mind, consider what retailers need to do in order to keep their stores, data and customers protected in the year ahead.

Additional Security Mandates Will Make an Impact in 2019

New mandates will be one major factor to consider. Among these are the General Data Protection Regulation (GDPR) and the Revised Payment Service Directive (PSD2).

With the risk of data breaches always looming, security that does not compromise customer privacy is a must. With GDPR and PSD2, this can be accomplished.

Already a requirement in Europe, GDPR mandates strict controls on customer data and places greater liability on retailers for any breaches. In 2019, the impact of the legislation will continue to spread worldwide.

Designed to improve payment services, PSD2 requires third-party providers to gain explicit consent from customers before accessing their payment account data. Among other things, this means retailers will need strong authentication to verify the identity of their customers.

EMV 3-D Secure Will Go Live in 2019

Happily, a new version of EMV® 3-D Secure (EMV® 3DS) – will be available in 2019 to help address these requirements. EMV 3DS will strengthen online payment authentication while also improving the user experience. In a nutshell, EMV 3DS will support the transmission of data during transactions for better risk-based decisions on whether to authenticate or not. Additionally, users should expect an easier experience compared to 3DS 1.x. Among the key attributes here are the elimination of the cardholder enrollment processes and the need for cardholders to remember static passwords.

Created by EMVCo – which is jointly owned by American Express, Discover, JCB, Mastercard, UnionPay, and Visa – EMV 3DS is part of the ongoing evolution of commerce. The new protocol translates to enhanced flexibility, performance, and security for browser-driven payments as well as application-driven payments.

Looking ahead into 2019, EMV 3DS embraces retail’s modern demands while also helping to satisfy consumer expectations for easy and secure payments.

AI Takes Center Stage

Artificial intelligence is already playing an important role in security and that trend is set to continue in 2019. When applying artificial intelligence into a retailer’s security strategy, merchants benefit by delivering a more proactive fraud protection approach to their collective security efforts.

In fact, through AI, businesses can connect customer data between devices while also locating, managing, understanding and even reacting to sensitive data that needs to be identified to ensure security is not compromised.

The importance of AI is also driven by the aforementioned security mandates and release of EMV 3DS. For example, CA Technologies, a Broadcom Company – one of the co-inventors of 3DS – has developed AI that leverages its global consortium network of real-time 3DS authentication data to support real-time risk scoring. And the company’s strong authentication technology is already PSD2 compliant.

What Retailers Can Do

For retailers, the time to respond to the threat of security is now. Having confidence that their data is secure does not come without the right strategies, however.

To help prepare for these potential risks and compromises that retailers face, merchants must first gain clarity on how these risks can be protected. Introducing EMV 3D Secure – an industry standard protocol – into retailer strategies is among the savviest of ways to avoid data breaches and other risks of fraud. And adding AI to the mix can give you gain confidence in each transaction made.

This article is sponsored by CA Technologies, A Broadcom Company. All opinions are my own.


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