A financial transaction wants to takes place on a mobile device, which the bank must verify very quickly — but how? Two new startups offer solutions that use network intelligence outside the mobile phone that originated the transaction to make sure transactions are kosher. The first, XYVerify, uses geolocation data from cellphone towers to determine if the transaction occurred within a previously approved “geo-fence.” Zighra, meanwhile, compares transactions to data sent by other users of its service to determine fraud. XYVerify’s Geolocation XYVerify uses data from cellphone towers to determine a user’s location and determine if it is in an approved area — inside the store registering the sale or inside the customer’s home, for example. Most other geo solutions use the data from individual phones, which can be spoofed by fraudsters, said Elliot Klein, XYVerify’s founder and CEO. If a user — or more specifically, his cellphone — is on, say, the West Side of Manhattan, the cell towers know this and relay the information to XYVerify. A transaction inside a store on the East Side would, therefore, be highly suspicious. Working invisibly in the background, XYVerify contacts the user’s bank in real time to report the suspicious transaction. XYVerify’s patented [...]
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