Payments and Fraud Glossary

H

Hash function

A function that can be used to map digital data of arbitrary size to digital data of fixed size. The values returned by a hash function are called hash values, hash codes, hash sums, or simply hashes. With Bitcoin, a cryptographic hash function takes input data of any size, and transforms it into a compact string.

Honeypot

A decoy computer system for trapping hackers. They are designed to purposely engage and deceive hackers and identify malicious activities performed over the Internet.

Host Card Emulation (HCE)

On-device technology that permits a phone to perform card emulation on an NFC-enabled device. With HCE, critical payment credentials are stored in a secure shared repository (the issuer data centre or private cloud) rather than on the phone. Limited use credentials are delivered to the phone in advance to enable contactless transactions to take place.

Hybrid detection system

Fraud detection system that uses both rule based and machine learning techniques.