Online/Digital Payment frauds are becoming the most common thing in today’s scenario. And because of this, safeguarding payments for consumers, businesses have become extremely important.
Since in India Digital Payment fraud has been growing at a much faster pace than global markets. On Wednesday, Data Security Council of India (DSCI) and PayPal India releases a report on Fraud & Risk Management in Digital Payments.
This report tells about the sophisticated online payment fraud mechanisms, threats, fraud prevention strategies, and the role of technologies, etc.
Interestingly, the report also highlights some of the key challenges that exist today. These challenges include fraud detection enforcement, investigation & legislative challenges, lack of awareness, disingenuous towards security, privacy laws, and organised crime.
Recommendations To Prevent Stakeholders From Online Payment Fraud;
The Fraud & Risk Management in Digital Payments report suggests some preventing measures for all the stakeholders on the online/digital payment ecosystem.
The recommendations are as, consumers should never share credentials (OTP, PIN, CVVs), use multifactor authentication. As a responsible consumer, always use licensed and trusted software and devices, use antivirus or firewalls. Also, allow only required permissions to apps, be cautious during apps installation, avoid shopping on unknown sites/apps, etc.
However, if we talk about the retail industry, then the report also suggests some steps to safeguard the process. The industry has to perform regular risk assessment, advanced data analytics, and threat monitoring. Whereas, the Payment Industry should adopt security and privacy first culture by investing in cybersecurity, implementing private/public bug bounty programs to find vulnerabilities in their system.
The report also discusses the role of policymakers, suggest to implement audit payment processes, standards development, threat modeling, restructure laws & legal ecosystem, and engage with global partners for skill & threat information exchange. Through continuous training and industry interactions, law enforcement agencies should empower and upskill.
Meanwhile, the report also points out some coming technologies that can be useful in fraud prevention. These technologies include IP Geolocation, Proxy IP address detection, machine learning (for real-time insights and predictive capabilities), and device fingerprinting.
The report further suggests the future fraud possibilities such as spoofing of current fraud prevention & detection mechanisms, device identifiers like IMEI, MAC address, SKUs/Barcodes, supply chain vulnerabilities, etc.