Digital identity and fraud in focus as AusPayNet highlights priorities ahead

  • By Christine St Anne

AusPayNet will keep its focus on driving a sustainable digital identify framework against the backdrop of increasingly digitised economy and an impending open data framework. 

As more people transact in the digital economy, AusPayNet CEO Andy White says it is crucial that there is an agreed digital identity framework that supports interoperability. 

It’s a framework already developed by the Australian Payments Council – as part of its plan in 2015 – described as a meta-framework. 

“The argument here is that different digital identity solutions will be able to be aligned to this meta-framework.” 

White sees the possibility of a number of providers offering digital identity services including the government. 

AusPayNet has already been approached by around seven digital identity service providers who are interested in being part of the accredited framework. 

He sees the potential for different levels of identities with different levels of trust, depending on the different use cases. Importantly the system has to be interoperable. 

“If you had a digital identity, then that consent mechanism becomes much smoother. It tends to complement a framework like open data.” 

“Individuals or businesses can establish their identity with any of those service providers, be it the government or private sector.  

“With the framework being interoperable, the established identity can be used anywhere.”  

White believes 2020 will be a really big year for digital identity. 

As noted earlier, a number of providers are keen to participate. 

He believes there could be a number of use cases that could come out of the framework including the ability for individuals and businesses to use their digital identity in a wide range of circumstances from making it easier to manage their username and password to improving KYC.

There is also a role for digital identity to play in the consumer data right once open banking is introduced on 1 July. 

“If you had a digital identity, then that consent mechanism becomes much smoother. It tends to complement a framework like open data.” 

Card not present fraud (CNP) is also another key priority. AusPayNet has already reported that card fraud has dropped 6.9 per cent and White highlights that this proves awareness among both consumers and merchants is having a positive impact. 

White says the industry is working to reduce CNP fraud while supporting the continued growth of e-commerce.  

The data was based on the period of 12 months to 30 June. According to this data, CNP fraud dropped by 5 per cent on the previous year, to $455.5 million as the industry has adopted secure technologies such as tokenisation, EMV 3-D Secure, real time monitoring and machine learning.

AusPayNet will remain vigilant monitoring fraud, including identity theft. 

For White it is about ensuring that payments remain secure, as well as convenient. The payments self-regulatory body is working with global organisations such as the FIDO Alliance, W3C and the PCI Security Standards Council to take an international approach to payments security. 

The full interview with AusPayNet’s Andy White will be featured in the February edition of AB+F