Innovations in e-commerce technology—driven by online and touchless purchasing options—have invited malicious cyberattacks, including identity theft, compromised bank accounts, and ransomware. The most common of these attacks is a “man in the middle” attack that intercepts digital communication between the user’s computer and the website it is talking to. Many sites still do not purchase security certificates verifying the site’s owner and employing encryption for financial transactions. Another common way of credit card information theft is scanning devices that attach to PIN Pads at gas stations, ATMs, and stores.
Financial institutions have minimized losses and protected their customers by adopting advanced security detection technology and adhering to strict new federal regulations. Nearly 50 percent of banking customers have had their debit card compromised and replaced through diligence by their banks, but the bank’s diligence has saved them money and possible identity theft. Customers are no longer stranded without access to their accounts, as banks respond quickly and efficiently to security breaches. Consumers have also become more aware of these risks and can often identify suspicious devices and websites.
Avoiding Compromised Financial Information
Financial institutions are doing their part to protect their clients’ accounts, but businesses receiving digital payments have also had to meet these new challenges. Consumers also have tools to help them avoid and identify financial data breaches. These methods all act to build trust between the consumer and third parties who are committed to data security. Here are some ways each of these entities is handling the new digital payment landscape:
Financial Institutions
Employing consumer behavior data to identify odd purchases or unusual locations
Allowing customers to set limits on spending, set alerts for large purchases, and set vacation locations to avoid freezing their funds
Immediately responding to suspicious activity and reimbursing customers for unauthorized purchases
Merchants
Using cloud-based technology to offload security compliance to service providers
Assuring that their website security and encryption are up to date
Employing transparency when security breaches happen
Consumers
Using the tools given to them by their banks to set up alerts, set vacation information, and stay aware of the newest security threats
Keeping their operating systems up to date
Learning to recognize potential threats such as compromised ATMs and point-of-sale terminals
Employing two-factor authorization for financial transactions
Cybersecurity for the Future
Cybersecurity threats evolve daily, and companies meet the challenge with new measures like biometrics that use fingerprints and iris recognition, voice recognition, and heart rate sensors that utilize wearable technology. Surveillance cameras used at concerts and large gatherings also serve as security measures to verify ticketing and head counts. And lastly, artificial intelligence will have a greater role in eliminating human error by detecting malware attacks before they compromise a network.
Artificial intelligence will have a greater role in eliminating human error by detecting malware attacks before they compromise a network.
Prioritizing FinTech Security
Maintaining cybersecurity and fostering consumer trust in financial institutions is essential now and in the future. Understanding emerging sources of cyberattacks and prioritizing cybersecurity precautions helps maintain consumer trust and avoids expensive security mitigation. Contact PayTech Trust through our online portal for more information on how we can help you navigate the new digital payment landscape.
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