Technology is what now enables people to make online payments with ease. However, it is also what is enabling more people and companies than ever before to secure those same payments.
So, what’s actually going on in this industry and how is tech helping to fight back against the fraudsters and scammers?
Contactless Payments Reduces Exposure
Contactless payments are more than just a high-tech way to pay that eliminates the need to put a card inside a device. It is also reducing the risk of data interception. Traditionally, skimming devices could obtain magnetic stripe information and use that to copy cards and use them fraudulently. However, that can’t happen with contactless options that use tokenized data. This information can’t be intercepted because of advanced ciphers.
Secure Payment Gateways
Another innovation is the secure payment gateway, something else that secures transactions and makes them more viable. Again, these systems use fraud detection and tokenization to ensure that money transfers go ahead with minimal risk. These can attach to third-party websites but still provide consumers with the high level of security they’ve come to expect.
Chargeback Fraud Prevention
Chargeback fraud prevention services are also offering innovative new approaches to protect business cash flow. These services use AI and other data collection systems to figure out whether credit card chargebacks are legitimate or part of a coordinated con game.
Currently, many companies take credit cards because it is so convenient for customers. However, the risk of chargebacks is real. Clients may dispute payments, leaving companies out of pocket. These new systems attempt to correct that by analyzing the underlying data and checking whether everything is above board and legitimate.
EMW Chip Tech
Another development is so-called EMV chip tech for payment cards. These innovations reduce reliance on easy-to-skim magnetic stripes, further reducing the risk of fraud.
The primary purpose of this technology is to protect users from skimming in person. However, it also applies when wallets or purses get stolen. Such technology makes it far harder for criminals to extract relevant information.
Biometric Authentication
Biometric authentication is another technology currently doing the rounds, making payment safer. These systems rely on finger print and iris scans before approving a transaction, reducing the risk of fraud further.
These scans are particularly helpful when combined with other security measures, like PINs and passwords. The combination is hard for criminals to mimic, even if they have access to one set of credentials.
Multi-Factor Authentication
Related to this last point is multi-factor authentication (MFA). Again, it adds extra layers of security to payments, protecting consumers.
For example, online banks will often request approval for online transactions with your card using apps, even for small payments.
Sensitive Data TokenizationFinally, we’re seeing a lot of payment services focus on tokenizing the most sensitive data. The idea here is to swap out real payment details with one-time use codes. These pieces of information are helpful for users, but they are useless for fraudsters. Even if they intercept them, they can’t do anything with them.
