PayPal: 5 Key Trends of Fraud for 2016
The Chief Risk Officer (CRO) of PayPal, Tomer Barel, recently wrote a commentary on CNBC outlining his predictions regarding the nature of payment frauds for the upcoming year.
According to Mr. Barel, there are five key areas that security experts should pay attention in 2016 in regard to fighting fraud in the financial services industry.
As the social media gains popularity among less sophisticated and naïve audience in emerging markets, fraudsters would likely get an upper hand in targeting people for identity theft using social media tools. Furthermore, these new social media users are mostly mobile device centric. Hence, criminals will shift their focus on the small screen in the coming year.
For example, the high penetration of mobile wallet services will certainly attract fraudsters to target consumers who use their phones and apps for online shopping. To emphasize on this point, Tomer Barel said that “fraudsters follow the money.”
According to him, security experts will need to think out of the box and start using sophisticated data analysis technology to fight fraud on mobile platforms. “Success in fighting fraud on the mobile platform will depend on how we make innovative use of the unique data and capabilities that the mobile platform creates – from location information to unique IDs,” he said.
However, there are some encouraging developments like the introduction of biometric security layers of mobile devices. For example, the use of fingerprint sensors to log in instead of pin code and patterns would make it more difficult for hackers to penetrate personal data on the physical device.
He also focused on the use of advanced machine learning to fight fraud in 2016. “Analytical tools such as advanced machine learning will become even more crucial in predicting and stopping fraud, with companies like PayPal able to sift through enormous amounts of data rapidly to spot the patterns and markers of fraud,” said the PayPal CRO.
Furthermore, he thinks that big data and data analysis technology play a larger role to help governments and corporations with their “regulatory and compliance efforts” in 2016.