New security, biometrics and authentication payment tools are coming to a wallet near you

SOMERSET, N.J., Jan. 08, 2024 (GLOBE NEWSWIRE) -- CompoSecure, Inc. (Nasdaq: CMPO), a leader in metal payment cards, security, and authentication solutions, today pointed to a growing need that could alter the payment security landscape in 2024. The company's CEO, Jon Wilk, anticipates a new era of payment cards designed to counteract the rampant challenges posed by fraud, data breaches and the prevailing password crisis.

“Banks and other payment card issuers have solutions in the hands of their customers today that can be enhanced to respond to security threats, earning the trust of both consumers and businesses,” Wilk said. “Turning a payment card into a hardware-bound passkey that functions as a physical authentication token provides a simple and secure device that is a strong compliment to current multi-factor authentication capabilities available in phones and computers today.”

Wilk points to the three threats that could shift payment technology:

• Passwords: For years, the pursuit of a passwordless future has been a promise on the horizon. A staggering 80% of data breaches have been attributed to poor password security, while an overwhelming 50% of call center activities are centered on passwords, according to Gartner. Many of the world’s leading business and technology companies are promoting passwordless and FIDO technologies because 68% of consumers want to shift away from passwords.

• Data Breaches: Data breaches range in size – from personal identity theft to huge corporate espionage and ransomware incidents. According to IBM, the global average cost of a data breach in 2023 was $4.45 million. Over half (51%) of organizations are planning to increase security investments because of data breaches.

• Fraud: In a world where credit cards are an integral part of global commerce, the staggering reality of a projected $35 billion in losses due to fraud in 2023, as reported by The Nilson Report, has ignited an urgent need for innovation. Consumers are becoming familiar with terms like "transaction validations," "new device authentications," and "card not present transactions," all of which underscore the prevailing sense of insecurity.
  

Payment cards, exceeding 25 billion in circulation worldwide according to the Nilson Report, are among the most common consumer products on the planet. In contrast, the number of iPhones, something we perceive to be ubiquitous, are estimated at only 1.5 billion.