Social Payments Pose New Security Threats

  • Identity Theft, Security

In todays ever changing world of new technology, companies are constantly trying to provide the newest innovations, products, and services to survive. Consumers and businesses alike want everything, and they want it now. Two of the newest trends in payments are mobile and social. Both of these means allowing consumers to purchase from just about anywhere on the go. This new convenience may tempt consumers to proceed without caution and ID verification. Social payments, while cutting edge and easy, pose some serious security threats.

What Mark so cleverly refers to as social security in her article, Social Security, Can You Marry Social Media and Payment Security? is a new issue in the payment processing industry. Applications on devices that are used for social payments allow users to store their personal information on the device itself and then are transferred to the application. Merchants believe this is safer because personal accounts are less of a target than a bank of servers. As mentioned in EVSs blog Fraud Prevention Ricks For Banking Industry, this is not always true. Leaving personal information open for application breeches as well.

Allowing a database, application, or smart device to store any type of personal information will greatly increase the chance of identity theft and fraud. Using ID verification and authentication through vendors such as EVS, allows transactions to happen real time without ever storing or associating personal data with an identity. Hopefully in the future, these types of technology can come together to form the ultimate solution. Until that time comes, making sure transactions are passed through ID authentication is the best way to decrease fraud.