The number of digital wallet users is expected to reach 50% of the world’s population by 2024, reports Juniper Research. So it’s clear that merchants need to add digital payments to the list of available payment options if they want to cater to a wider audience.
However, merchants must also be aware of threats and fraud trends flourishing in online markets. In this article, we’ll mention the most popular fraud patterns and digital payment threats to pay attention to.
Social engineering. This is “a method of persuasion”. It takes place when a fraudster lures a victim into doing things that would compromise the security of his confidential payment info. This method works because people are inclined to trust others. Fraudsters exploit multiple channels to manipulate online victims. These channels include phone calls, emails, and social media platforms. There are two main social engineering techniques – phishing and scams. They both aim to entice users into sharing their payment credentials.
Malware. Malicious software, or malware, refers to any software used to access third-party computers and steal or interfere with sensitive data. It comes in all forms and shapes. And with fraudsters becoming more and more tech-savvy, it’s getting more difficult to identify and prevent malware attacks.
Mobile cyberattacks. With a growing dependence of a modern user on a mobile device, cybercriminals are working their way into mobile app fraud. It’s less secure, and therefore, serves as an easy target for fraudsters. In fact, at least 38% of iOS and 43% of Android apps are considered “vulnerable”. Moreover, with mobile devices, the fraudster no longer requires physical access to your smartphone to be able to steal sensitive data.
Cryptojacking. With cryptocurrencies gaining their momentum these days, cryptojacking is coming on stage. It’s mobile-related and takes place when hackers use someone else’s mobile device without the consent of the said person. Most victims of these threats experience very short battery life, overheating, etc, indicating extreme use of the device by the third party.
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Digital payment security measures:
Email validation and authentication. Payment service providers can use these two measures to detect and prevent email phishing and spoofing early on. European Payments Council recommends using SPF and DKIM as prevention measures as well as run frequent awareness campaigns. Informed means armed, and that’s exactly your users need.
Limits on the number of installed apps and cyber hygiene. Might seem obvious, but with the overwhelming volumes of software we use today, the best way to avoid malware is to limit the number of installed applications. Only download programs from trusted vendors and remember to regularly update it. Outdated apps allow fraudsters to get access to your device with you knowing it.
PCI DSS certification. This security standard is only one of many mandatory requirements for online merchants. It protects the user’s data online. So, if you’re a user, make sure to pay on sites that have this certification in place. If you’re a merchant, reach out to us so we can help you obtain a certificate asap.
Contact Paywise today for more information!