Bottomline Technologies’ New Report Shows Fraud Dangers in Mobile Payments, Beyond
Fraud is one of the biggest dangers in mobile payments, not too far behind poor security and identity theft, all of which are at least somewhat interconnected. A new report sent our way from Bottomline Technologies reveals that there are some significant dangers still ahead thanks to fraud, but the good news is that some equally significant strides have been made.
There was some good news to be had in this study, which noted that more organizations experienced some kind of fraud or fraud attempt, but losses were about the same as the previous year. This means that some of this fraud turned out to be ineffective, or that the average losses had declined.
This development—more fraud but not more loss as a result—actually proved the same with little regard to the vehicle. Check, card, and ACH fraud, even ransomware or full-on system intrusion hacking, all proved to be happening more often, but not getting any more out of the increased efforts. Better yet, there’s been more spending on security, as well as a clear sense that security controls have gotten stronger.
Among the respondents, 88 percent revealed they had audit trails of activity, 62 percent have alerts for unusual behavior taking place in the system, and 29 percent have alarms in place for those activities that need supervisory deactivation. Yet only 48 percent of the total respondents have actually implemented any one of these measures; these percentages are a reflection of those who put the tools in question in play.
With this in mind, the survey may actually be good news. Cognizance of the fragile nature of security is an important indicator that most security professionals know that there’s always room for improvement. Complacency, especially in a field like this where the criminals are constantly working to improve, can leave one on the back foot as far as responses go.
Providing security to mobile payments platforms, or to anything else where security is required, is a constant process of upgrade and retrain. The Bottomline Technologies report makes it clear that, though there’s more to do yet, there will always be more to do, and understanding that is the biggest step forward a business can take.