By Dean Workman
Suresh Rajagopalan, President Software Products, FSS (Financial Software & Systems)
With an explosion of digital payment channels, transaction security enhancement has become indispensable for all entities in the payment process – issuers, acquirers, merchants, payment brands, mobile and digital commerce solution providers. The risks and cost of securing a growing volume of transactions to meet regulatory and compliance requirements has increased substantively.
According to the Nilson report, October 2016 edition, general purpose and private label credit, debit and prepaid cards worldwide generated $31 trillion in total volume in 2016, a 7.3% increase over 2014. Losses based on fraud to card issuers worldwide reached $15.72 billion. By 2020, card fraud worldwide is expected to total $31.67 billion.
The continuous evolving and dynamic nature of fraud is the biggest business threat banks face today. The multiple facets of fraud include skimming, card trapping, shoulder surfing, card-not-present transaction fraud, inadvertent disclosure of PIN card information and pharming. Banks need to be vigilant and continuously upgrade fraud and risk management infrastructure and governance processes to protect card sensitive information and prevent unauthorized transactions. Over time, several controls have been implemented including chip-based cards, two-factor authentication such as OTP, Dynamic Device Authentication and Tokenization, with a view to Click here to read entire article
Source:: IT News Africa