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Challenges of cybercrime as we see a huge growth in online payments

Growth in online payments

Source: Statista.com

2 min video looking at the challenges of cybercrime as more payments are made online.

There has been a huge increase in digital crime during the COVID-19 pandemic as more transactions have migrated online, with the FBI reporting a 75% rise in digital crime.

Online payments are estimated to be doubling in the next 4 years to over $8 trillion by 2024.

Juniper research estimate online payment fraud will be over $23 billion p.a. by 2023.

Mastercard is looking at how to protect its card users from malware, monitoring spending patterns that could spill into other countries, they are also looking behavioural biometrics using ‘connected intelligence’ and share information with a bank/issuer by employing AI.

To reduce the costs of chargeback fraud, Mastercard bought a company called ethoca, which allows collaboration between retailers and banks.

Finally, Mastercard has been piloting Digital Identity to let people prove who they are immediately and securely.

Even firms like Apple have had security challenges such as iOS 14 sharing information with different Apps with some publications suggesting it may be better to not install this latest upgrade. Unfortunately, hackers still sometimes override fraud detection, thus stealing money from banks, such as $20 million from a Mexican bank.

Two areas payment service providers are focusing on are Trust and keeping a strong ID when transacting. A further challenge for on-line payments is when smart devices that hold our ID and payment details, how can we trust them to do normal transactions and secure them from hackers?

With Digital ID, there is a need to be able to share certain information but not all your information — You may not need to share you DOB to confirm if you are over 18 to buy a beer.

When machines can pay instead of a person it raises fresh challenges as the machines are connected 24/7 and can order anything from everywhere — i,e fridges ordering milk, or cars paying for parking or booking a service. Currently, the security is poor for many wifi networks that these smart devices use, although there are ways to improve your wifi security. It is, therefore, of no surprise that Blockchain technology, with its cryptographic security, is being used to hold and use personal data and to help make payments more secure and faster.

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