Every innovation seems to foster faster reaction, especially of the negative variety. This is especially evident in the banking and online payments domain. With the emergence of faster payment gateways and self-service banking portals, there is also a cyberfraud waiting in the wings.
While banking and retail companies are keen to leverage opportunities in innovative payment gateway advancements, they are wary about the costs and effect of these frauds. Hence, the onus is now on payment gateway companies to apply next-generation fraud-fighting tools faster than crooks can break through.
Ankur Sharma, VP – Analytics, Instamojo, lists different types of cyber threats and advancements in payment gateways.
Q. What are some of the key cyber threats and frauds that target payment gateways?A.
- Phishing calls, where fraudsters dupe people into revealing their card details and OTP by posing as bank officials
- Using payment gateway to collect payments into illegitimate accounts for money laundering
- Using payment gateways to collect payments for selling illegal goods and services
Q. What are some of the latest innovative advancements in payment gateways?A.
- Instant Settlements
- Real-time Fraud Detection Algorithms
- KYC Verification Process Automation
- Dedicated Resolution Center
Q. How do companies like Instamojo devise next-generation fraud-fighting tools faster than cyber thieves evolve solutions to get through them?A.
- Advanced transactional monitoring and risk scoring, utilising many variables around the transaction and the involved parties
- Combination of machine learning driven alerts on transactions and human specialists’ expertise
- Continuous feedback driven re-training of fraud detection models using reinforcement learning
- Using data across various banking and payment platforms to monitor universal activity of potential fraudsters and flag them
- Social Media and Online Presence scrutiny of merchants and buyers
Q. How do payment gateway companies get merchants to become PCI compliant to avoid cyber breaches and identity thefts?A.
Companies like Instamojo take care of maintaining PCI compliance and adherence to all norms on the merchant's behalf. They have rigorous auditing mechanisms to comply with the PCI regulations. When a user needs to enter their card details, Instamojo redirects them from merchant's website to its PCI-compliant website infrastructure, which ensures full security on the card transactions.