As efforts increase to protect customers from card-present and card-not-present fraud, there is an increasing risk lurking for banks and retailers: false positives. According to KPMG’s 2019 global fraud survey, 51% of respondents reported a significant number of false positives resulting from current technology solutions and decreasing efficiencies in fraud detection.
With an estimated 37.9% of all internet traffic attributed to bots, and bad bots accounting for more than 50% of that, retailers and financial organizations are struggling to defend against a constant barrage of account takeovers, credential stuffing, card cracking attacks and fake account creation.
The COVID-19 Pandemic has enabled contactless payment volumes to increase quicker than previously projected. According to Juniper research, contactless payments will triple to $6 trillion worldwide by 2024, up from about $2 trillion in 2020, as the amount of mobile wallet transactions increase and banks expand the use of contactless cards.
While major, multi-million dollar man-in-the-middle attacks have remained under the radar in recent months, spear phishing and social engineering attacks are on the rise as fraudsters continue to take advantage of the uncertainty surrounding COVID-19.
When it comes to card-not-present transactions, security is constantly a moving target. Between February and April, the peak period when COVID-19 was spreading across much of the US, cyber-attacks against the financial sector were reported to have risen by 238%. The exponential growth of digital payment transactions, combined with the increasing variety of customer-facing devices and payment applications, has many financial institutions re-evaluating their approaches to cybersecurity.
Increasing payment speed and infrastructure complexity is leading to rising payment fraud rates. When it comes to the risk assessment and authentication of real-time payments transactions, the time window for analysis has shrunken to pretty much zero. Some of the challenges banks and credit unions are dealing with today include: The result of these challenges? More real-time payments fraud, mounting financial losses and new questions surfacing over who is liable for the recouping of funds.
Five minute videos. Once a week. Seven weeks. A payment fraud boot camp miniseries to speed up your transaction-level payment fraud detection and prevention.
INETCO thrives on helping financial institutions deliver an amazing customer experience through optimized transaction performance, faster detection of transaction-level fraud and maximized business value from payment intelligence. Our core competency lies in our ability to decode a wide variety of payment protocols on-the-fly, making comprehensive transaction data ready for real-time analysis.
Welcome to the final installment of our 3-part series featuring recommendations to help financial institutions (FIs) navigate the impact of COVID-19 on their payments business. While we have previously focused on providing tips around managing the surge in online and mobile transactions, as well as how to combat the increase in card-not-present fraud, this blog will focus on how to drive payments revenue and provide an exceptional customer experience.
When COVID-19 caused a surge in online and mobile transactions, INETCO needed to quickly identify bottlenecks that were preventing its clients’ customers from accessing their bank accounts and making payments. Bijan Sanii, President, CEO and Co-founder, says INETCO looked at all real-time transactions to identify where every transaction was “getting stuck,” ensuring the stability of customers’ payment transactions across channels, such as mobile, online, ATMs and retail.
