By Alan Nevels
Oct. 11, 2022
Cash, checks, credit, debit, and prepaid cards remain staples of the payments industry. And, though consumers have embraced ACH and wire transfers as essential ways to pay and move money, digital tools, such as Apple Pay and Google Pay wallets, Venmo and Cash App, and other digital convenience offerings have increasingly become popular payment methods for consumers due to their convenience and speed. There is no doubt that the pandemic accelerated a focus on various payment methods for making purchases and payments as well. And as consumers’ interest and adoption of these new tools have grown, so have their expectations.
Financial institutions (FIs) are expected to deliver dependable, secure, and frictionless payment services that are also convenient, span all personal devices, and encompass multilayered strategies that center on validating the identity of their users and ensuring the integrity of their devices. As growing numbers of consumers migrate to digital transactions, the new ease and speed of digital payments decreases the likelihood of online shopping cart abandonment, serving up a win for both businesses and banks. But along with this convenience comes new opportunities for fraudsters and new challenges for mitigating fraud.
Sophisticated criminals are stalking the dark web and lying-in-wait to steal valuable personal and business-related information. So, it’s imperative that community banks are aware of these potential threats and are prepared to defend against them. Let’s examine four prevalent challenges facing today’s digital payments space:
Fraudsters are proving to be nimbler in the digital payments space, making the bank’s best line of defense informed customers and employees. Staying knowledgeable about fraud trends and collaborating with peers can help combat fraud and quickly identify existing and emerging threats.