ThreatMetrix and Gemalto partner to offer a customer-authentication product that integrates their respective services.
Leverages the ThreatMetrix Digital Identity Network and Gemalto’s authentication expertise.
How might it interact with the DTA's forthcoming national Trusted Digital Identity Framework?
Point of View
ThreatMetrix and Gemalto have partnered to provide an authentication offering that integrates the services offered by the two companies. The new product, being offered globally, will focus on serving clients in the financial services industry, including banks, payment and remittance service providers, card schemes and fintechs.
ThreatMetrix provides its clients with a customer-authentication service that distinguishes trusted customers from cybercriminals, by using digital identity intelligence garnered from its ThreatMetrix Digital Identity Network.
Gemalto authenticates people, transactions and objects, and provides data and identity protection services to customers. It is the world’s largest provider of EMV products, including chip cards, payment terminals and authentication for secure online banking.
The world is becoming increasingly more digital, fraudsters and cybercriminals abound, and consumers are demanding seamless online experiences. Smart digital authentication has never been more important.
ThreatMetrix and Gemalto’s joint offering, which integrates risk-based authentication, ‘strong authentication’ and digital identity – all the while balancing security with user experience – could be on the mark. And with both companies having a presence in Australia (indeed ThreatMetrix was founded here in 2005), could local clients soon benefit from enhanced authentication?
The combined service comes at a time when an Australian national digital identity framework is firmly on the agenda. Following recommendations from the Financial System Inquiry, the Federal Government established the Digital Transformation Agency (DTA) to work with government agencies and industry to develop a Trusted Digital Identity Framework.
Furthermore, according to the Australian Payments Council, future success of the payments system necessitates a robust and effective digital identity framework. The Council is providing industry leadership on digital identity as it pertains to payments, and represents interests of the payments industry in its engagement with the DTA.
It is, therefore, important to consider the ThreatMetrix-Gemalto offering within this context. ThreatMetrix probabilistically identifies its clients’ customers, based on layers of device, behaviour and location data, and personal information (such as email addresses and usernames). However, a national identity framework would deterministically identify customers with ‘trusted digital identities’ supplied by public and private sector ‘identity providers’.
How the new commercial service will interact with the national framework once it comes into play will be interesting to observe. Given the national identity framework will be opt-in, the user experience of setting up and using a digital identity will be a key factor influencing outcomes.