Fraud remains one of the key hurdles to overcome in the financial sector. Although card issuers and banks are doing what they can to reimburse customers, proactive action is direly needed. But how can we anticipate increases in payment fraud? That seems to be the most pressing matter for most financial services professionals today.
Emerging Payment Fraud Techniques Are Worrisome
It is impossible to ignore the ingenuity with which internet criminals commit payment fraud these days. There have never been more potential attack vectors that today, ranging from computer hacks to malware, sending fake invoices to users, and social engineering. Preventing all of these attacks is proving to be increasingly difficult.
A recent TD Bank survey shows how most payment services professionals believe payment fraud will become an even bigger concern than it is today. The next two to three years will be very critical in this regard whereas less than one in ten respondents is a firm believer of how this threat will be under control by that time.
Electronic payments are a critical factor in the fight against fraud. Albeit This form of payment is much more convenient for consumers and retailers, it also creates new fraud challenges that need to be taken into account. That being said, the rate of adoption for electronic payments is a lot slower than most people would anticipate it to be.
Faster payments are a double-edged sword, as an increased rate of movement also means an exponentially increasing fraud risk factor. Preventing near real-time payments is pretty much impossible unless something changes. That change will come through educational efforts, both on the corporate treasurers and financial professionals level.
Banking partners can help enterprises and entrepreneurs fight fraudulent payments. But at the same time, most banks are already stretched thin in the cyber security department, making it difficult for them to come up with solutions. A lot of things will need to change before preventive measures can be taken in the payment fraud industry, that much is certain.
Source: Dark Reading
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