How to Keep Payment Frauds at Bay?

Mobile Payment Fraud Prevention

Skimmers & cybercriminals are some of the terms used for fraudsters, who are responsible for payment frauds. Such criminals strip the funds, property, and crucial personal information of victims. Generally, three scenarios can result in payment frauds. First, being stolen / lost goods; second being unauthorized transactions on Internet; and lastly false requests for refund or similar scenario. The main reason of these being prevalent factors for online frauds is the immense boom in e-commerce sector, which majorly relies on online payments for selling / buying of goods.

There is various modus operandi or interactions that the fraudsters follow for acquiring sensitive information and make an online fraud possible. The popular ways are Email, instant messaging, online auctions, phone calls, rerouting internet traffic to fallacious websites and lastly by sending text containing malware to smart phones. Since everything is online nowadays, there are an increasing number of gaps or patches or glitches in some online systems. These are the weakness, which is targeted by the cybercriminals. Even if there is firewall, which is not updated as per new technology, then also it can be explored by fraudsters to steal user’s sensitive data and make payment fraud a possibility.

There are some ways by which you and e-commerce industry can help reducing or keeping the payment frauds at bay. The first method is to ensure regular automatic update of your anti-virus, anti-malware, and firewall. These software programs play the role of shield against hackers and blocks their attempts to gain access to a secure network. Hence, their continuous update is necessary. Talking about few other ways to safeguard your online presence and shopping experience are mentioned below:

1. Stay update with the latest fraud trends. You can subscribe to a newsletter of reputed organization delivering such service
2. Always pay online via the authorized and well-known payment gateway
3. Change your login credentials and tokens on regular basis
4. For each transaction, customer should log in to complete the payment.
5. Keep checking your system with the anti-virus and anti-malware software
6. Try using an encryption program for emails and / or transactions where important information sharing is needed

Types of Payment Frauds

Phishing Scams: These are the most common forms of payment frauds. These frauds are prevalent in those emails or URLs wherein it is required to enter private / personal data. Some examples are bank account and credit card login credentials. You can stay away from the phishing swindles by trusting only the known and original websites of the merchants. In case you receive an e-mail from unknown account or person, then just mark it as spam.

Page jacking: Here, the hackers take control on some part of an e-commerce website through which they reroute the website traffic to a different website that may have malicious codes that can be used to access a network security system. It is the responsibility of e-commerce business owners to be aware of such activities.

Identity theft: This type of fraud is not limited to Internet; it is possible offline as well. Once the user’s personal information is stolen by a fraudster, it is used under false pretense – this is identity theft. One way of avoiding it is NOT to log into public Wi-Fi.

Authors of this post are Bill Trueman and Kevin Smith who are leading payment, risk & fraud expert who provide their payment fraud prevention consultancy services to card issuers and banks worldwide. For more information one can visit their website at http://riskskill.com/