American Express recently announced that it had acquired mobile device authentication and intelligence solutions provider InAuth Inc. The specific financial terms of the Amex deal have yet to be disclosed.
Founded in 2011, InAuth helps clients to identify, evaluate and reduce fraud risks in their digital channels using a device authentication platform to measure the potential risk involved in any given digital transactions.
InAuth’s technology is currently in use at some of the largest financial institutions, payment networks and merchants in the world. Prior to the acquisition announcement, American Express used InAuth’s platform to supplement its security and fraud management capabilities. In the near future, InAuth will operate as a wholly- wned subsidiary of American Express.
Anré Williams, president of the Global Merchant Services & Loyalty Group at Amex, was quoted as saying, “Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express. We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security. This acquisition, along with Accertify and other significant investments we’ve made in data analytics and technology, will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”
The acquisition is the latest in a series of moves by the global financial services giant to enhance its fraud prevention capabilities — a more prescient and immediate need for all businesses in the online space than ever before.
American Express’ 2016 Digital Payments Security Survey found that as commerce has shifted to online and mobile channels, so too has the risk of fraud. The survey found that 70 of U.S. merchants have experienced an increase in sales through online and mobile channels in the past year. At the same time, 60 percent of merchants surveyed reported experiencing fraud in online and mobile sales.