American Express (Amex) has acquired InAuth, a mobile device authentication and intelligence solutions provider, to strengthen fraud-prevention and security capabilities.

InAuth, established in 2011, delivers advanced device identification, risk detection, and analysis capabilities to help firms limit risk, remove friction, and reduce fraud within their digital channels.

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InAuth’s technology uses device authentication to enable clients to evaluate the potential risk of a digital transaction, whether it be a customer logging into their account on a mobile app or web browser, or making a purchase from a merchant’s website.

Presently Amex uses InAuth’s technology as part of its broader fraud management capabilities, and InAuth’s services are also sold by Accertify, a subsidiary of Amex.

Lisa Stanton, CEO of InAuth, will continue as president and will report to Jaromir Divilek, senior vice president of global network business, American Express.

InAuth will operate as a wholly-owned subsidiary of Amex. The acquisition of InAuth is culmination of an investment made earlier this year by American Express Ventures, the strategic investment arm of Amex.

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Amex president of global merchant services and loyalty group Anre Williams said: “Security is part of our heritage, and helping our merchants and partners fight fraud is a top priority for American Express.

“We’re acquiring the right company at the right time to evolve our leadership position in fraud management and security.

“This acquisition, along with Accertify and other significant investments we’ve made in data analytics and technology, will help us continue to offer security and protection to our merchants and partners as mobile and online spending drive commerce.”