While on the surface, it may only take a few clicks to buy something over the Internet, the financial ecosystem has a lot of different intermediaries that work together to ensure successful transactions.
Entities include the consumer, bank, merchant and payment network. Digital payments have come a long way since their inception, with many security measures in place to ensure that they are just as secure, if not more so than traditional payment methods.
Security Measures for Digital Payments
Security measures for online digital payments include two-factor authentication. This adds a simple yet highly effective layer of security to customers. Before proceeding with a transaction, the consumer must supply an additional form of identification, so that their identity can be authenticated. This could be a text message or a code sent to an email address.
Banks, cryptocurrency exchanges, casinos and sites that sell concert tickets often implement 2FA as they handle a higher-than-average amount of transactions per day. For instance, websites that offer top ‘book of' slots games along with free spins and several paylines are regularly drawing in consumers. This constant transfer of money between entities means the casino industry has to reinforce its security systems. 2FA helps by preventing phishing, brute-force, man-in-the-middle and social engineering attacks.
Ensuring PCI DSS Compliance
The PCI DSS provides all companies with a set of guidelines that they have to follow to protect consumer credit card data. 12 components are required to achieve PCI DSS compliance: secure firewalls, updating software routinely and encrypting cardholder data are imperative.
This has to be done in combination with restricting access to devices and systems. While PCI DSS adds a level of security, it also ensures competence and trust.
Tokenising Card Data
Tokenisation card data is a very secure method of data encryption. It helps to convert credit card data into a series of randomly generated numerals. This new sequence is known as a token. The numbers within the tokens don’t have any inherent value, other than the information they represent.
This means they can be sent from one entity to another, without risk of being stolen.
AI Fraud Detection
AI is now being used to fight fraud in online payments. This is helping to push digital payments while adding a new layer of safety. AI tech can be used to analyse customer behavioural patterns over time so that unusual activity can be pinpointed. NLP, or National Language Processing can also be used. This can be used to identify indications of fraud. An example of this would be if a customer changes their online account information and then requests that their password be reset.
Another tech advancement would be the fact that AI algorithms can be trained with new data so that they can be improved in terms of accuracy and effectiveness. This helps to keep data secure, without compromising the overall security measures in place.
Conclusion
Tech is always evolving, and becoming more secure by the year. By embracing the latest security measures, companies can then begin to provide a safer and more secure experience to their users.
