In today’s digital economy, the process of paying for goods and services has never been easier, and consumers clearly approve. Shoppers have an increasing choice in terms of payment options as card and bank account details are no longer required. The likes of Apple, Google, Amazon, Samsung, and Uber continue to perfect the ultimate in payment ease. These companies have removed steps in the payment process, giving customers a more personal and streamlined experience.
Our brave, new technology-driven payment ecosystem reflects consumer demand and brings innovation to both users and retailers. According to a global payments insight survey, there is near universal agreement among merchants that new payments technology benefits businesses. This reflects a shift from seeing payments as purely transactional to being part of the overall customer experience, as well as a differentiator between competitors.
Conversely, the increasing rise in cyber fraud and breaches has caused headaches and losses for businesses. Cyber criminals employ ever more sophisticated methods to break into companies’ systems. Businesses must protect themselves from what seems like an endless wave of cyberattacks.
The effects of fraud hurt everyone – consumers, merchants and financial institutions. For the year ahead, we examine a few security trends to help businesses stay up to speed with the latest issues.
In the past, as long as end-users installed and regularly updated anti-malware software, traditional detection techniques were mostly effective against the spread of malware. However, these solutions can no longer keep up with the changing malware landscape. This has resulted in a large number of connected units that have either poor or no measures in place to prevent unauthorised device access. Fraudsters see loT as a major tool for conducting numerous crimes, including payment fraud.
Mobile-first consumers will increasingly be prime targets for fraud. Cybercriminals will find creative ways to steal user banking and card credentials. Identification and the removal of mobile malware is essential to stop these attacks early.
Real-time payment challenges
Rising expectation from consumers for real-time and cross-border financial transactions pressures businesses to make decisions about the integrity of a transaction more quickly. Consumer demand for frictionless payments make this task even more challenging. Companies must find solutions to make sure that customers are who they say they are, every time.
Data breaches, exposing a high volume of customer data in one hit, will continue to make headline news. Fake account setups and account takeover attacks will impact merchants. Merchants should regularly test their systems to detect any suspicious activity at the earliest stages.
As online payment security improves through biometric technology, tokenisation, and more, fraudsters have shifted to account takeover attacks. This involves fraudulently using another person’s credit or debit card account, first by gathering information about the intended victim, then contacting their bank or credit card issuer to masquerade as the genuine cardholder. The criminal then arranges for funds to be transferred out of the account, or will change the address on the account and request new or replacement cards.
Your customers rely on you to deliver a superior experience and protect their personal information. It’s a big responsibility, especially in today’s climate with identity theft rates increasing and fraudsters constantly devising new ways to steal. It stands to reason that in 2018, companies should invest more resources in security to prevent fraud and chargeback scams.
To learn more about protecting your payments – and your business – contact a Verifi expert today.