Fighting Online Payment Risks

  • Security

Account takeover is one of the biggest concerns of 2014 in the banking and payments industry. Anything from stolen information to money laundering can put a business at risk and doubt in customers minds. Online payments raise the risks of fraudsters gaining access to information and compromising accounts. Weve noticed organized crime around online payments has developed many different tools to steal information without being detected for periods of time. Some of the greatest security challenges facing the payments industry have to do with identity verification and authentication.

To enhance security you must know your customers, their customers and your employees. Organizations cannot grow at an optimal rate due to fraudulent attacks and poor fraud prevention tools. There is a need for collaboration and cooperation with one another to ensure criminals dont have the upper hand on valuable data. Criminals are stealing personally identifiable information, credit card information and whatever else they can get their hands on. There are forums and private marketplaces where criminals communicate and sell what theyve stolen.

Being able to prevent account takeover requires identity management and user verification. Too many companies are relying on outdated and weak identity verification techniques such as CAPTCHA. Payment processors need to be more proactive and adapt in this new emerging payment marketplace. Understanding these new environments, risks and figuring out how to adapt to help in the fraud prevention process. As far as attack detection goes, banking institutions and payment processors have to keep customers privacy concerns at top of mind when implementing new security measures. Being proactive can help you stay prepared for threats and potential attacks.

There is a lot of data out there that you can use to verify the identities of your customers and look for indicators that somebody is not who they say they are. Utilizing fraud prevention solutions that come fully equipped with dynamic KBA, drivers license verification and more can help protect your company and your customers. Remember, mobile payment systems give you the ability to have access to huge new numbers of the worlds customers and theres definitely competition in this area. Stay proactive and collaborate with peers in your industry to keep fraudsters out.

[Contributed by EVS Marketing]