Can you imagine that many years ago, the only way to pay for goods and services was through trade barter? This system didn’t involve money at all. All you have to do to pay is exchange with goods or services that the other transactor requires of equal value. Although the system was fraught with many problems and limitations, it was a simple one.
However, over the years, innovations brought about different payment systems up to the most trendy online payment system. The online payment system brought about unprecedented growth in many industries all over the world. The world is gradually becoming a digital world, and now, transactions can be made online from any corner of the world connecting to wherever you want to pay for goods or services. Alas, with these innovative developments come cybersecurity risks. As you well know, any online transaction is open to many potential cybersecurity threats. Big data firms and payment systems are some of the potential targets of cybercriminal attacks. Although many online payment system operators try their best to secure their payment platform, the threat is still ever-present.
Most Trusted Online Payment Methods
Thanks to technological developments, when it comes to payment methods available online, there are plenty of options users can choose from. This is why many people consider the security of any payment method before they decide to use them or not – whether their funds and personal and financial information are safe. Although the existence of cybersecurity risks is still ever-present, there are still many payment methods that are considered to be trustworthy and have a lesser risk factor than others.
- EMV-Enabled Credit Cards: The high rate of credit card frauds happening online brought about EMV-enabled credit cards. The EMV smart credit cards come with an integrated chip that always creates new authentication codes for all transactions. This added layer of security makes these cards more secure than the traditional cards.
- Digital Wallets or Third Payment Processors: Digital wallets and third-party payment processors provide an extra layer of security for customers. By using these services, you won’t need to use your financial information to make payments online. The most popular payment service is Paypal, but there are many more, including Skrill, Neteller, Apple Pay, Google Pay, Payoneer, and many more.
- Online Banking: Using internet banking, users can easily conduct online transactions through a bank or other financial institutions while keeping their personal and financial information safe. Typical examples include iDEAL and Trustly. In addition to being secured, this payment method is also fast and free of unnecessary details. A typical example of this is the Pay n Play platform of Trustly for online casinos, which offers casino players seamless registrations and faster withdrawals.
- Crypto Payment: Cryptocurrencies offer one of the most secure ways to pay online. This is largely due to its decentralization and being a secured channel of payment. Though not as widely accepted as other online payment methods, it is rapidly enjoying acceptance within different regions globally.
Cyber Security Risks of Online Payments
When you make transactions online, there is always a small element that cybercriminals and hackers could potentially steal your financial information, leading to an empty account balance. However, the risk is not solely on the side of the users. Payment services providers, merchants, and platforms like online casinos that accept deposits from players online, too are open to cyber threats as well. There have been many cases of data breaches leading to huge losses. A report says that the overall losses to cybercrime attacks across the payment industry are expected to reach $200 billion in 2024. This is why professional cybersecurity professionals are needed in tech-Savvy industries. There are many ways by which cybercriminals perpetuate their activities. Some of the forms they use are grouped into the following;
Digital Identity Theft
The reason why it is important to always keep your private details safe when you engage in anything online is due to identity theft. Whenever you want to open an online bank account, you will have to go through a Know Your Customer (KYC) process. Here, you supply the bank with your personal information which they will use to create verification data to add assurance.
Cybercriminals make use of this verified data to commit a series of frauds. Some can make use of it to create verified online bank accounts and then apply for payment cards and use the cards to propagate many payment frauds. They can also use verified data to take over already existing verified digital identity accounts.
Synthetic Identity
This is a variant of digital identity theft. Here, cybercriminals create digital identities using a mix of fictitious and real personal data. Many reports indicate that this highly sophisticated operation caused the credit card industry to lose up to $6 Billion in 2016 alone.
Push Payment Fraud
This is another risk related to online payment. Fast and real-time payment processes have helped to enhance the customer experience when paying online, but Cybercriminals are making use of the same fast and seamless mechanism to commit cybercrimes. All variants of this scheme involve customers thinking they are making legitimate invoices online, but the funds end up in the criminals’ hands.
The risks are not solely on the side of users and customer services providers. The merchants are also open to some risks. However, to keep customers’ data safe, many platforms that accept payments use some of the best security measures to prevent hacking and any other vulnerability. For example, online casinos use 128-bit SSL Data Encryption technology to safeguard customers’ personal and financial information.