Nethone brings behavioral biometrics to Japan with Nissho collaboration
Nissho will help distribute Nethone’s anti-fraud technology to protect Japan’s rapidly growing ecommerce market with account takeover detection and prevention capabilities under the name of its Tranfis brand as ‘Tranfis powered by Nethone.’
The partnership will allow Nissho to distribute Nethone’s core fraud-protection solutions, Guard and ATO. While Guard focuses on suspicious behavior, anonymization, and automation, ATO applies behavioral biometrics to prevent fraudulent activities. The solutions are enhanced by Nethone’s AI modeling approach and its Profiler, which combines raw behavioral biometric data.
Nethone applies advanced machine learning to enhance its multidimensional KYU profiling process that analyzes over 5,500 attributes. Its technology allows businesses and enterprises in various sectors to protect themselves and their users against account takeovers and card-not-present fraud in ecommerce transactions, digital goods, and finance. This, the company claims, allows clients to reduce risk management needs, as well as user-side friction caused by manual and passive authentication procedures.
Nissho’s DX Business Division 1 Senior GM and Executive Officer Hideaki Koga said, “Nethone has a very similar approach to fraud prevention as ours and technology that seems to be one of the best in the market. We highly appreciate Nethone’s Know Your User (KYU) approach to user profiling. In the era of customer‑centric service, we not only want to know customers, but we also want to understand their real motives.”
The Japanese ecommerce market has shown continuous growth to become one of the top 3 leading markets with record revenue projections of $112. 5 billion for 2021, according to Statista forecast cited in the announcement. ecommerce is also projected to boost this revenue to a record $143.3 billion by 2025.
“With the highest penetration of online commerce in the world, Japan is the ideal place for fraudsters to hit. Especially as its citizens are shifting from cash to online payments, i.e. credit cards. Soon damages from offline credit card fraud will be lower than online,” stated Nethone’s Business Development Team Head Patrick Drexler. “Many companies in Japan are not ready for the upcoming changes and security threats. They still do not even have such positions as a chief online security officer or fraud manager, which are common in online business in Western countries. But Nethone solutions will help them with effectively fighting online fraud. Nissho is fully aware of that, that is why we decided to form business collaboration and invest in this crucial region.”
Nissho estimates it will generate 200 million yen (just over US$1.8 million) in sales of “Tranfis powered by Nethone” this year.