People, processes and technologies to address the emerging risks of online and mobile payments
With convenience comes new risk
In the past, consumers used cash, checks and/or credit, debit or prepaid cards to pay for their purchases. They also used money transfer services such as ACH and wire payments, which had a delay in the settlement allowing more time for investigation. Those days are becoming a distant memory as more and more consumers embrace – and expect – the speed and convenience of digital payments, either online or from mobile devices.
New digital methods are reinventing the payments ecosystem. Payment applications such as Google Pay make it quick and easy to move money around the market and across borders. As more and more retailers are adopting various forms of digital payments, they have forced banks and financial entities to adopt alternative payment options. For example:
The new ease and speed of digital payments make it more likely for a consumer to make a purchase – a win for the business and the financial institution. But this convenience brings new opportunities for fraudsters, which in turn presents new challenges for fraud mitigation.