Coocon Launches Card Ownership Check to Curb Payment Fraud

How it works

A customer first completes mobile phone identity verification and consents to a credit information inquiry. The service then looks up that person's card holding data, adding a card-ownership step to existing payment authentication. Coocon developed it with authentication specialist Chingu Dot and connected it to a credit information bureau, so it covers all card issuers in South Korea.

Checks include whether the customer holds a card from each issuer, the number of credit cards held, and whether the first card issuance date matches. It can also show whether the person is registered in financial-order disruption records tied to practices such as "cardkkang", a form of illicit card-based cash conversion.

Who it targets

PG companies, rental and subscription operators and e-commerce firms can use the results to flag suspected stolen-card or other-person-card transactions. It also helps reduce settlement risk when a cardholder later claims they did not make a payment.

The service is offered through an SDK-based web link or an API. Companies can add the check to simple-payment registration or recurring-billing sign-ups. At the PG payment stage, they can also restrict choices to cards from issuers the customer actually holds.

What comes next

Coocon plans to link the new service with its existing identity verification APIs to grow its remote authentication business. Those include APIs that detect copied ID images, check ID authenticity, and simple authentication via PASS, Naver and KakaoTalk.

CEO Kim Jong-hyun said customer verification and risk management before payment have become essential for companies as remote payments become routine, and that Coocon will keep expanding verified data and authentication services.