“I Spy” More Changes in Payments, More Need For Security


“I Spy” More Changes in Payments, More Need For Security

The Constant Evolution of Payments

As you know from being savvy and frequent readers of these posts, the world of payments shares a critical motif with life itself: Change is the only constant with security management.

Payments in Flux

And by “change,” we don’t mean those coins in your pocket, left over from the last time you used cash. However, we’re discussing how the method of making payments is rapidly changing, demanding ever-evolving security measures.

The Fed’s Initiative

The Fed has just been in the news, announcing they will be bringing more change to the payment arena. According to the Wall Street Journal, they intend to enhance and accelerate the security of the U.S. payments system, citing its fragmented and outdated infrastructure. This covers everything from checks to credit card payments and online transactions.

Private Sector Collaboration

But they can’t do it all themselves. The Fed, having “limited authority over the broader payment system, called on private-sector firms to participate in task forces to coordinate efforts.

Extended Services

It also promised to speed up its own service for settling payments by slightly extending its hour of operation later this year and working to make it a 24-hour-a-day service over time.

Challenges in the Private Sector

Of course, the private sector has already been changing payments exponentially, especially in the area of “virtual wallets,” like Google Wallet, and Apple Pay. However, the Cult of Mac website — which, from its name, can be deduced to be pro-Apple — reports that “Apple Pay actually makes it really easy to commit credit card fraud.”

A New Challenge

The problem, they say, has “nothing to do with Touch ID, NFC, Apple’s secure element, or stolen iPhones. The problem, according to an unconfirmed report from DropLabs, is that Apple Pay is so easy to use, fraudsters don’t even have to create a physical fake card anymore.”

A Change in Fraud Tactics

Evidently, hackers are simply “buying stolen consumer identities, complete with credit card info, and loading that into Apple Pay. This allows them to create a fake digital credit card without going through the hassle of printing it out on plastic to use in stores.”

According to the article, the crux is that “banks aren’t taking all the necessary measures to ensure the actual credit card owner is the one using the credit card on Apple Pay. (But) banks have the choice to authenticate Apple Pay cards with a two-factor code sent to the owner’s phone number.”

The Role of Two-Step Authentication

And of course, two-step authentication will become increasingly prevalent as EMV cards are introduced to America.

All of it speaks to the one “constant” being an ongoing need for security, no matter how your customers are paying.

AVPS and iSpy Fraud: Protecting Your Business

AVPS works with iSpy Fraud to help protect your data, and your customers. iSpy lets merchants set up extensive filtering to detect fraud, and to screen out suspicious transactions, credit card numbers, etc.

Setting Limits and Reducing Chargebacks

You can establish limits for the amounts charged in individual transactions during defined time frames. These restrictions may be imposed on particular credit card numbers and/or IP addresses. All of this helps reduce the number of chargebacks.

For more information on how iSpy can help protect your business, contact your AVPS Rep today. That’s another “constant,” too: No matter how fast the world of payments changes, we’re still here to help.

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