Payment Security has become a topic of concern in today’s world. With technology becoming more and more important for every function in almost every sector, new types of hazards have also started to occur. In today’s digital world, where everything is at your fingertips, there is also a rise in cybercrimes. Payment is a part of the industry that sees the most number of fraud cases registered, worldwide. The use of smartphones for payments has further increased the number of frauds related to payments. According to a 2018 AFP Payments Fraud Survey, out of nearly 700 treasury and finance professionals, 78 percent of all organizations were hit by payment frauds in the year 2017.
Yes, we have taken huge steps to tackle this issue of fraud by constantly developing our payment security systems, and we are continuing to develop it more. But there are some precautions that we can take to keep ourselves and our organization safe from such payment frauds.
Here we have listed some methods that can help you in enhancing your payment security,
- Partner with a trustworthy online payment processor
One of the most assured ways to provide a safe payment experience to your customers is to partner with a trusted payment platform. Selecting the right payment processor is a first step for accepting online payments from customers. The selection of the payment platform partner should be done very carefully as its experience can help the client to comply with the payment industry data security standards (PCI DSS).
All you require is an experienced partner who can provide you with all-time support and maintains the PCI compliance for you by implementing various approaches like a training program, Vulnerability Assessment, and full-time customer support. Some payment providers even reimburse the money for monetary loss in case of a fraud event that occurs through a data breach.
- Verify each transaction
It is very critical for business owners to predict and analyze that the person making the purchase is genuinely a cardholder. Various techniques can be used to prevent this type of fraud. Implementing the address verification system especially in the eCommerce store is the best way to analyze and verify the fraud.
The system will check if the billing address is correct by verifying it with cardholder’s data from the issuing bank. As a result, a person with a stolen card or card number doesn’t have access to the wrong billing address.
Incorrect billing addresses may not always mean that the transaction is fraudulent hence it is advisable to take additional security measures to identify the customer.
- Purchase cyber liability insurance
As more personal information is being collected and stored through online transactions, the risk to organizations who are collecting personal information and payment information online is growing exponentially. Investing in cyber liability insurance coverage, along with proactive security measures, helps offset the financial impact of a data breach and the legal costs that arise from it.
Financial losses that result from data breaches and other cyber events are covered by Cyber liability insurance. Numerous different policies include both first-party and third-party coverages. First-party coverages apply to losses sustained directly by your company. For example, damage caused by a hacker to the electronic data files of your company. Third-party coverages apply to claims against your organization by individuals who have been injured as a result of your actions or failure to act. For example, a customer sues you for negligence after his personal data is stolen from your system and released online.
- Use two-factor authentication
Having two-factor authentication is crucial, especially when it comes to all types of accounts including your social media accounts. If an individual has access to any of your accounts, they will automatically have access to your financial payments attached to them as well. Having your two-factor authentication will further secure each login you make. It’ll notify you if your account is being accessed from another device you’re unfamiliar with.
Two-factor authentication also referred to as two-step verification or dual-factor authentication, is a security process in which the user provides two different authentication factors. A two-factor authentication process is a sub-part of the multi-factor authentication that utilizes two authentication factors not only verify the user but also to protect the online payment system. It also helps in developing your mobile payment security.
- Get an SSL certificate for your site
Secure socket layer (SSL) certificates are very important in today’s world of online business. The website that wants to accept online payments must implement SSL. It is an encryption method for online security which is utilized to secure data that is being transferred from the customers to the website.
Many small businesses may overlook security because they might think that they won’t be targeted, but small businesses are often the most targeted businesses when it comes to payment breaches. So get an SSL certificate for your site, and it will help you protect your website and the valuable data of your customers.
Payment Security is something that can be obtained with the help of advanced technologies as well as by aware audiences and businesses. By taking some precautions and applying some technologies we will surely be able to reduce these types of frauds in the coming future.
Aashish Yadav, Content-Editor, FintecBuzz
Aashish is currently a Content writer at FintecBuzz. He is an enthusiastic and avid writer. His key region of interests include covering different aspects of technology and mixing them up with layman ideologies to pan out an interesting take. His main area of interests range from medical journals to marketing arena.
