Community Research and Development Information Service - CORDIS

H2020

EFD Report Summary

Project ID: 683626

Periodic Reporting for period 1 - EFD (The e-wallet Fraud Detection)

Reporting period: 2015-08-01 to 2016-07-31

Summary of the context and overall objectives of the project

EFD (e-wallet Fraud Detection) aims to provide people with a tool that will dramatically reduce e-Wallet frauds and false identity thefts. To date, the cost of credit card frauds and false identity thefts worldwide amount to billions of dollars annually. The objective of this project is to implement the e-wallet Fraud Detection (EFD) system and support Self Safe Ltd (SSafe) in becoming a leading provider of mobile fraud detection and prevention tools to the emerging market of mobile e-wallets.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

Analysis of the e-Wallet Market
Survey of the Relevant Technologies
Back bone development of the system

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

"The EFD system objective is to reduce fraudulent financial transactions, by using anti-theft algorithms that runs on the user mobile device. The system works in an off line mode without the need for the device to be connected to the issuer or acquirer database (i.e. bank or financial institution that processes credit or debit card payments on behalf of a merchant). The EFD system detects an unauthorized attempt to make a transaction when it identifies a problem or suspects a fraudulent activity and prevents it.

The EFD technology will defend e-wallets in transactions at the Point of Sale directly via NFC as well as transactions done on the internet. Based on EFD's patented technology, e-wallet users will have a "financial transaction firewall". The EFD authorization system uses Special PIN (SPIN) identification in case of a suspicious transaction. The process runs without the acquirer or e-Wallet back office side.
The EFD technology will be part of the e-Wallet security process and will assist in minimizing friction with the e-Wallet user, while allowing the system to skip additional identification means whenever the EFD process finds the next transaction as suitable enough to the e-wallet owner’s past behavior.

The EFD back-office Cloud infrastructure would refresh and update the mobile "financial transaction firewall" at least every 24-48 hours.
EFD’s ultra-light fraud detection algorithms and models, offers on-the-spot intervention and prevention of fraudulent financial transaction when using the smartphone. In case of fraud, EFD system may instruct the electronic wallet to block all payment means until issuing a release process (based on the issuer policy) while sending relevant information to customer and payment means issuers. The technology enables to cover all payment means that are approved for use by the smartphone wallet, achieving higher accuracy and fraud detection rates."

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