Respondents to a Visa survey indicate that cyber threats remain a principal obstacle to expanding use of digital payments.
Mechanisms of fraud.
MIT Technology Review and Visa have published a study of digital financial services, finding that 59% of respondents cited cybersecurity threats as the biggest obstacle to expanding their use of digital payments:
“Adopting more advanced security capabilities is a priority for many, including digital tokens and other forms of enhanced authorization (32%) and improving fraud detection through biometric authorization, artificial intelligence, and other advanced technologies (43%). About 42% say their security measures are important to their customers.”
Digital payments still a novelty for many businesses.
Additionally, the survey found that “36% of respondents are just getting started with digital payments, 43% expect to expand their offerings over the next 18 months, and many are venturing into cross-border transactions (37%) and cryptocurrency (18%).”
Paul Fabara, executive vice president and chief risk officer at Visa, said the pandemic drove a spike in phishing emails targeting customers who began relying solely on digital banking for the first time. “Phishing attacks went through the roof,” Fabara said. “Lots of consumers weren’t prepared for a fully digital environment and fell victim to emails and texts that look like they are from a company they’ve done business with but were fraudsters.”
The importance of not underestimating cybercriminals.
Fabera added, ““I have learned not to underestimate these crooks, because they have access to the same technology as many companies out there—in some cases better. We’re one of the most protected networks out there, but we’re attacked thousands of times a week.”