Tokenization Beyond Payments
As the technology behind payments becomes more advanced and readily available, so too are the possibilities for fraud. Even with the introduction of EMV chip cards to the United States, identity theft and financial fraud is on the rise. The Federal Trade Commission’s online database of consumer complaints reports 13 million complaints from 2012-2016, 42 percent of which were fraud related, and 13 percent, identity theft complaints.
One innovation solution to the rising trend of fraud and identity theft is tokenization. Usually, when a card or mobile payment is made, the card number passes through various points in the authorization process, easily exposed to many points of interception. Tokenization stores the original number in a secure token vault, and substitutes it with a unique tokenized number (otherwise known as a “token”).