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If you want to start your own payment gateway business, you should follow certain tips to reduce the incidents of payment fraud. Visit us at: https://itio.in/
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An Introduction • In today's new normal, there has been a massive surge in the count of digital payments among consumers worldwide. Unfortunately, they also create opportunities for fraud by hackers and malicious entities. If you want to start your own payment gateway business, you should follow certain tips to reduce the incidents of payment fraud.
Impact of Payment Fraud • According to Juniper Research, the total cost of eCommerce fraud to merchants exceeded US$48 billion in 2023 as compared to US$41 billion in 2022. It is expected that the count is expected to exceed US$362 billion globally between 2023 and 2028, with US$91 billion alone in 2028.
How does Payment Fraud Happen? • Payment fraud usually starts with a fraudster or hacker gaining unauthorized access to payment card data, such as through a phishing attack that would have tricked individuals into providing card data. Hackers or fraudsters may capture card data in many other ways such as skimming (the installation of a device on a payment terminal to record card info and PINs).
Some Security Tips • Carefully evaluate merchant services apps: You should perform a comprehensive risk-scoring analysis when onboarding new merchant accounts in compliance with regulations such as Know Your Customer (KYC). Thereafter, you need to carefully conduct ongoing monitoring of their activities to watch for suspicious events or activities. • Flag unusually large transactions: You should be vigilant to identify unusually large orders or transactions, and flag any that appear suspicious.
Some Security Tips • Use AI-powered fraud identification and prevention solutions: You should leverage artificial intelligence (AI) to proactively identify and curtail fraud. It is equally important to identify high-risk or malicious customers and flag new accounts to prevent purchases by fraudsters who have committed identity theft. • Conduct detailed background checks: You should conduct background checks on employees who handle payments of any kind or have access to sensitive payment data.
Some Security Tips • Train your employees: You should regularly educate your employees about payment fraud and different ways to proactively identify and curtail suspicious activity. • Stay updated with the latest fraud trends: You should regularly stay updated with the latest payment fraud trends and invest in the latest, proactive fraud detection tools, functionalities, and technologies.
Conclusion • Today, payment fraud has become a nuisance for individuals, businesses, and the world economy. With the growing popularity and surge of online transactions, fraudsters are becoming increasingly sophisticated in their techniques (such as account takeover, identity theft, money laundering, merchant fraud, clean fraud, payment interception fraud, friendly fraud, card not present fraud, authorized push payment fraud, and card fraud), making it more difficult than ever for individuals and businesses to detect and prevent fraudulent activity.
