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.
