Data technology firm Rambus is introducing a new solution for central banks and clearing houses to heighten security of payments using tokenization.
The company announced news on Wednesday (May 9) that it is launching its Payment Account Tokenization solution to combat fraud in direct credit, direct debit and person-to-person (P2P) payments. Central banks and clearing houses will be able to replace account numbers with unique tokens to safeguard sensitive information, Rambus explained, adding that the solution can enhance security for ACH and real-time payments.
“Tokenization has already been proven successful in securing mobile payments worldwide,” said Rambus SVP and General Manager of the firm’s Security Division Bret Sewell in a statement. “Our Payment Account Tokenization does the same for real-time payments, enabling account-based transactions to be processed faster and safer than ever before.”
In its announcement, Rambus highlighted commentary from 451 Research principal analyst Jordan McKee.
“Digital has paved the way for fast and easy payment experiences, prompting a rise in account-based transactions,” McKee said. “Fraudsters have made note of this trend and are increasing their focus on account credentials given their growing disbursement across many locations, including eCommerce websites, mobile and P2P wallets, invoices and payroll.”
“To protect customers and thwart fraudulent attacks, businesses must implement security tactics that serve to eliminate the use of sensitive credentials in the transaction flow,” he added.
Rambus has integrated additional features into its solution, including lifecycle management for banks to manage tokenized bank account numbers by suspending or reactivating them. Banks can also control domains, enabling them to limit tokenization to a particular merchant, channel or spending amount.
The acceleration of payments has led some analysts to raise concerns about the ability for companies, consumers and the financial services industry to identify and combat fraud. Data from NACHA, however, found no increase in fraud reported by banks since the rollout of Same Day ACH last year.