Mastercard has announced the introduction of its Digital Wellness program which utilises AI-based click-to-pay technology and new standards in order to provide an easier and safer online shopping experience.

The Program

The Mastercard Digital Wellness program provides tips and resources that are designed to help businesses (especially small and independent businesses) protect themselves from cyber-attacks and data breaches. The program includes Secure Remote Commerce, Mastercard’s Cyber Readiness Institute (a collective of business leaders), and The Global Cyber Alliance which provides SMBs with free cyber-security tools.

New Click-To-Pay Checkout System

Coming out of the Digital Wellness Program is Mastercard’s new click-to-pay checkout system which is enabled by Mastercard’s deployment of EMVCo’s (Europay, Mastercard, Visa) specification. The standards that make up EMVCO’s specification provide a foundation that enables the processing of e-commerce transactions in a consistent, streamlined fashion over a variety of digital channels and devices, including smartphones, tablets, PCs and other connected devices.

This means that the click-to-pay checkout system can be used for all kinds of online shopping, across multiple devices, and across cards, and can replace old key-entry checkout systems.

Tokenization and NuData

The click-to-pay checkout system incorporates tokenization and NuData, which represent Mastercard’s AI and machine learning tech. NuData can prevent fraud by (for example) monitoring website traffic changes, analysing changes in browsers and web surfing speeds, and verifying all the user data that makes a user unique (such as an individual’s scroll speed on their device).

The inclusion of AI technology means greater security and no need for customers to enter passwords when they pay.

The Advantages

The key advantages of the click-to-pay checkout system from the Digital Wellness Program are that:

• It tackles the problem that customers feel unease when it comes to paying for things online because of the added security.
• It’s fast and easy – the instant click-to-pay with no need for passwords tackles the reluctance of online shoppers to create a new user account.
• Merchants who adopt the system have a system from a known and trusted provider that could give them a better chance of preventing fraud.

These factors mean that the system could make customers more likely to feel comfortable shopping for things on smaller websites or with unknown retailers.

What Does This Mean For Your Business?

For Mastercard, this is a way of selling its services to the huge market of smaller and independent businesses.

For merchants, it’s a way for them to leverage the latest AI tech to protect themselves and their customers from fraud, and tackle popular known barriers to purchases from smaller retailers online i.e. worries about security and the unwillingness to take the time to set up a new user account when they want to buy something.

For customers, the system should provide a safe and fast purchasing experience which can only reflect well on the merchant.  It remains to be seen, however, how many merchants take up the new system and what the cost versus benefit implications will be.

The “iFalcon Face Control” AR glasses that incorporate an 8-megapixel camera in the frame and NNTC facial recognition technology (are due to go on sale next year) are reported to have already been deployed into several security operations.

US / Dubai Manufactured

The facial recognition-enabled smart glasses are made by American company Vuzix and use facial recognition algorithms from Dubai-based company NNTC.  It has been reported that the NNTC facial recognition algorithms rank in the top three for accuracy in the US government’s Face Recognition Vendor Test and can detect up to 15 faces per frame per second, thereby enabling them to identify a specific individual in less than a second.

To date, only 50 pairs of the facial recognition-enabled glasses have been produced, all of which have been sold to security and law enforcement and are, according to NNTC, being used as part of security operations in the United Arab Emirates capital Abu Dhabi.

The iFalcon Glasses Won’t Need An Internet Connection

The iFalcon Face Control glasses that are due to go on sale next year will come with a portable base station.  This will mean that they will have a portable connection to a stored a database of targets, thereby giving the user greater mobility as they won’t need an Internet connection for the software to function.

Similar Used In China

Facial recognition glasses have already been used by police forces in China last year in order to keep blacklisted people e.g. certain journalists, political dissidents, and human rights activists away from the annual gathering of China’s National People’s Congress.

Other Deployments

Known use of facial recognition for law enforcement already happens in the US through its incorporation with body cameras and CCTV cameras, and in the UK it has been used in deliberately overt trials and deployments e.g. a two-day trial in Romford, London by the Metropolitan Police in December 2018 using use vehicle-mounted cameras, at the Champions League final at the Millennium Stadium in Cardiff 2017, and at the Notting Hill Carnival in 2016 and 2017.

Criticism and Problems

The use of facial recognition technology at events and trials in the UK has, however, come under fire over several issues including poor levels of accuracy, a lack of transparency in how it is used, the possible infringement of privacy and data security rights e.g. what happens to images, and value for money in terms of deployment costs versus arrests.

This led to ICO head Elizabeth Dunham launching a formal investigation into how police forces use facial recognition technology (FRT) in the UK.

Data security and privacy are such thorny subjects for agencies, organisations and businesses alike that even though using facial recognition to help organise photos has been a standard feature across the social media industry, Microsoft is now issuing an update to its Windows 10 Photos app that prompts users to perform the almost impossible task of confirming that all appropriate consents from the people in the user’s photos and videos have been obtained in order to use facial recognition to find photos of friends and loved ones.  This move shifts the burden of responsibility away from Microsoft to the user.

What Does This Mean For Your Business?

The covert and mobile nature of these new glasses not only seems to be somewhat dystopian and ‘big brother’ but could, in theory, provide a way for users to simply get around existing data protection and privacy laws e.g. GDPR.

As a society, we are to an extent, used to being under surveillance by CCTV systems, which most people recognise as having real value in helping to deter criminal activity, locate and catch perpetrators, and provide evidence for arrests and trials. The covert use of facial recognition glasses is, however, another step further on from this and from the deliberately overt and public trials of facial recognition in the UK to date.  As such, to be used in the UK, it will require faith to be put in the authorities that it is used responsibly, and that its accuracy is proven, and that rights groups are able to access facts, figures, and information about the technology, where and how it is used, and the results.  Presumably, the ICO may also have questions about the use of such glasses.

If there is no public transparency about their use, this could also result in suspicion, campaigning against their use and a possible backlash.

Amazon is launching a pilot scheme which will enable 100 small online businesses to get the opportunity to sell their goods in 10 Amazon pop-up stores in UK high streets.

Clicks And Mortar

The pop-up stores will be branded as ‘Clicks and Mortar’ and will enable small online businesses selling homeware, health and beauty, food and drink and electronics to get their first taste of selling from a physical store in a UK high street. The stores may also offer customers the chance to discover new brands on their local high streets.

Amazon had already tested the pop-up store idea in the UK, albeit briefly and on a small scale, when last October it opened a fashion store in Baker Street in London to gauge customer opinions. The online shopping giant has also opened a “Home of Black Friday” store as part of the annual retail event in London over the last two years.

Following eBay

Last month, as part of its own month-long retail experiment, eBay opened a “concept” store in Wolverhampton’s i10 building, in which 40 businesses have been able to offer interactive experiences to buyers, such as workshops and tutorials. eBay reportedly launched the store as part of a partnership between itself and Wolverhampton Council after its own research showed that showed a quarter of small UK retailers did not have an online presence. The store was designed to show how stores of the future could combine technology with a human connection.

Tough Times On The High Street

The UK high street and many of its famous brand occupants have been going tough times, much of which has been blamed on a move to online shopping and competition from online brands and stores, high business rates, and a further reduction in footfall as more high street stores become empty and less attractive to shoppers.

For example, the latest BRC research shows that one in 10 shops in UK town centres is lying empty and that the vacancy rate has risen over the last four quarters and is now the highest reading since April 2015.

Many big chains have announced widescale branch closures e.g. Debenham’s having to close 22 stores, the Topshop group of stores facing problems, Boots possibly closing 200 branches, and Marks & Spencer now planning to close 72 big high street stores in addition to the 48 already closed.

Criticism

Amazon has faced criticism from some business and retail commentators for the working conditions in its warehouses, and over the relatively small amount of tax that pays in the UK.

What Does This Mean For Your Business?

For a limited number of small online retailers, the pop-up stores offer a great opportunity to have a low-risk, well-supported bricks and mortar retail experience and a chance to gain visibility for their brands.  For the high street, Amazon pop-ups may offer a brief boost in variety, footfall, and interest. For Amazon, one of the big online retailers that some would say have contributed (with other online retailers and high business rates) to the decline of the high street, the pilot offers them a chance to boost their brand and good publicity at a time when the many vacant stores gives them the opportunity to choose some great high street locations in major UK towns and cities. It will also offer Amazon, as it did with eBay, a legitimate opportunity to see how retailing could look in the future and a way to assess opportunities, perhaps, for its own brand and services in high streets.

A group of 47 technology companies, rights groups and security policy experts have released an open letter stating their objections to the idea of eavesdropping on encrypted messages on behalf of GCHQ.

“Ghost” User

The objections are being made to the (as yet) hypothetical idea floated by the UK National Cyber Security Centre’s technical director Ian Levy and GCHQ’s chief codebreaker Crispin Robinson for allowing a “ghost” user / third party i.e. a person at GCHQ, to see the text of an encrypted conversation (call, chat, or group chat) without notifying the participants.

According to Levy and Robinson, they would only seek exceptional access to data where there was a legitimate need, where there that kind of access was the least intrusive way of proceeding, and where there was also appropriate legal authorisation.

Challenge

The Challenge for government security agencies in recent times has been society’s move away from conventional telecommunications channels which could lawfully and relatively easily be ‘tapped’, to digital and encrypted communications channels e.g. WhatsApp, which are essentially invisible to government eyes.  For example, back in September last year, this led to the ‘Five Eyes’ governments threatening legislative or other measures to be allowed access to end-to-end encrypted apps such as WhatsApp.  In the UK back in 2017, then Home Secretary Amber Rudd had also been pushing for ‘back doors’ to be built into encrypted services and had attracted criticism from tech companies that as well as compromising privacy, this would open secure encrypted services to the threat of hacks.

Investigatory Powers Act

The Investigatory Powers Act which became law in November 2016 in the UK included the option of ‘hacking’ warrants by the government, but the full force of the powers of the law was curtailed somewhat by legal challenges.  For example, back in December 2018, Human rights group Liberty won the right for a judicial review into part 4 of the Investigatory Powers Act.  This is the part that was supposed to give many government agencies powers to collect electronic communications and records of internet use, in bulk, without reason for suspicion.

The Open Letter

The open letter to GCHQ in Cheltenham and Adrian Fulford, the UK’s investigatory powers commissioner was signed by tech companies including Google, Apple, WhatsApp and Microsoft, 23 civil society organisations, including Big Brother Watch, Human Rights Watch, and 17 security and policy experts.  The letter called for the abandonment of the “ghost” proposal on the grounds that it could threaten cyber security and fundamental human rights, including privacy and free expression.  The coalition of signatories also urged GCHQ to avoid alternate approaches that would also threaten digital security and human rights, and said that most Web users “rely on their confidence in reputable providers to perform authentication functions and verify that the participants in a conversation are the people they think they are and only those people”. As such, the letter pointed out that the trust relationship and the authentication process would be undermined by the knowledge that a government “ghost” could be allowed to sit-in and scrutinise what may be perfectly innocent conversations.

What Does This Mean For Your Business?

With digital communications in the hands of private companies, and often encrypted, governments realise that (legal) surveillance has been made increasingly difficult for them.  This has resulted in legislation (The Investigatory Powers Act) with built-in elements to force tech companies to co-operate in allowing government access to private conversations and user data. This has, however, been met with frustration in the form of legal challenges, and other attempts by the UK government to stop end-to-end encryption have, so far, also been met with resistance, criticism, and counter-arguments by tech companies and rights groups. This latest “ghost” proposal represents the government’s next step in an ongoing dialogue around the same issue. The tech companies would clearly like to avoid more legislation and other measures (which look increasingly likely) that would undermine the trust between them and their customers, which is why the signatories have stated that they would welcome a continuing dialogue on the issues.  The government is clearly going to persist in its efforts to gain some kind of surveillance access to tech company communications services, albeit for national security (counter-terrorism) reasons for the most part, but is also keen to be seen to do so in a way that is not overtly like ‘big brother’, and in a way that allows them to navigate successfully through the existing rights legislation.

New rules from the US State Department will mean that US visa applicants will have to submit social media names and five years’ worth of email addresses and phone numbers.

Extended To All

Under the new rules, first proposed by the Trump administration back in February 2017, whereas previously the only visa applicants who had needed such vetting were those from parts of the world known to be controlled by terrorist groups, all applicants travelling to the US to work or to study will now be required to give those details to the immigration authorities. The only exemptions will be for some diplomatic and official visa applicants.

Delivering on Election Immigration Message

The new stringent rules follow on from the proposed crackdown on immigration that was an important part of now US President Donald Trump’s message during the 2016 election campaign.

Back in July 2016, the Federal Register of the U.S. government published a proposed change to travel and entry forms which indicated that the studying of social media accounts of those travelling to the U.S. would be added to the vetting process for entry to the country. It was suggested that the proposed change would apply to the I-94 travel form, and to the Electronic System for Travel Authorisation (ESTA) visa. The reason(s) given at the time was that the “social identifiers” would be: “used for vetting purposes, as well as applicant contact information. Collecting social media data will enhance the existing investigative process and provide DHS greater clarity and visibility to possible nefarious activity and connections by providing an additional toolset which analysts and investigators may use to better analyse and investigate the case.”

There had already been reports that some U.S. border officials had actually been asking travellers to voluntarily surrender social media information since December 2016.

2017

In February 2017, the Trump administration indicated that it was about to introduce an immigration policy that would require foreign travellers to the U.S. to divulge their social media profiles, contacts and browsing history and that visitors could be denied entry if they refused to comply. At that time, the administration had already barred citizens of seven Muslim-majority countries from entering the US.

Criticism

Critics of the idea that social media details should be obtained from entrants to the US include civil rights group the American Civil Liberties Union which pointed out that there is no evidence it would be effective and that it could lead to self-censorship online.  Also, back in 2017, Jim Killock, executive director of the Open Rights Group was quoted online media as describing the proposed as “excessive and insulting”.

What Does This Mean For Your Business?

Although they may sound a little extreme, these rules have now become a reality and need to be considered by those needing a US visa.  Given the opposition to President Trump and his some of his thoughts and policies and the resulting large volume of Trump-related content that is shared and reacted to by many people, these new rules could be a real source of concern for those needing to work or to study in the US.  It is really unknown what content, and what social media activity could cause problems at immigration for travellers, and what the full consequences could be.

People may also be very uncomfortable being asked to give such personal and private details as social media names and a massive five years’ worth of email addresses and phone numbers, and about how those personal details will be stored and safeguarded (and how long for), and by whom they will be scrutinised and even shared.  The measure may, along with other reported policies and announcements from the Trump administration even discourage some people from travelling to, let alone working or studying in the US at this time. This could have a knock-on negative effect on the economy of the US, and for those companies wanting to get into the US marketplace with products or services.