Earlier this week, Visa took a more ambitious stance on cybersecurity, blogging about the company’s commitment to IT security in the face of heightened digital security concerns.
The leading credit card brand pointed out that internet fraud jumped 69% in 2020 alone, according to the FBI’s Internet Crime Report. Yet despite this increase in cybercrime, Visa has recorded cyber fraud records, with the company investing more than $9 billion over the past five years in security innovation and analytics.
On April 19, Visa’s chief risk officer, Paul Fabara, commented on the security of the payments industry, noting that “the common denominator to almost all post-pandemic behavioral changes is the growing importance of digital payments.” This relates to payments from $0.40 downloads to multi-million dollar enterprise exchanges, according to Fabara.
“To say that the task of securing the global movement of money is complex would be an understatement, especially now,” Fabara said in his blog post. “Unfortunately, criminal enterprises have seen the pandemic as a golden opportunity to exploit human and technical vulnerabilities.”
Fabara said more than three-quarters (78%) of people who received an unsolicited link clicked on it, while more than half (51%) of people said they used the same password for most of their passwords. their online activities. And, more than 4 in 5 global businesses (81%) experienced an increase in cyber threats (during the pandemic) or experienced downtime during a cyber incident (79%), according to the FBI report.
“A lot of attention is paid to innovations at the cutting edge of finance and payments – tap to pay, crypto, buy now-pay later, for example,” Fabara’s blog post said. “What gets less attention are the products, platforms and services that ensure any new form of money movement is safe, secure and private.”
Visa has more than 1,000 cybersecurity experts focused on offensive and defensive protection.
Rob Rendell, vice president of payment solutions at Feedzai, noted that while it’s “absolutely true that digital payments are on the rise, fraud is the real driver.”
Feedzai research shows that while online transactions have increased by 65%, fraudulent attacks have increased by 233%.
“How does a financial institution stand a chance of fighting large-scale fraud? They have to solve two fundamental problems: are you who you say you are and are you authorized to make the transaction you want to make? said Rendel.
“It’s a combination of identity and financial transaction,” Rendell said. “It’s difficult because you have to overlay these two sets of real-time data across your organization. So today’s fraud requires a whole new approach – one where data is connected through a common sandbox, orchestration will be essential across multiple silos. This change will be the biggest challenge facing risk management teams. »
COVID-19 has upended many assumptions about how, where and when we work, shop and play.
According to Digital Commerce 360, since the pandemic emerged in late 2019, e-commerce volume has increased by more than 50.5%, while peer-to-peer payments have more than doubled and subscriptions to services digital streaming hit the billion mark.
“IFs are getting ready to [this] new approach to infrastructure and execution with existing teams,” Rendell said. “We dubbed it ‘The RiskOps Age.'”
Visa has engaged in ethical hacking attempts with its in-house engineers, reviewing fraud attempts, IP addresses and GPS data to catch criminals. Vulnerability testing alone saved customers $31 million in fraud prevention in FY21, according to the card company. Other jobs, like handling incoming incidents with customers, are less dramatic, but no less important. In one case, Visa helped prevent approximately $2.2 billion in customer fraud attempts using the Visa Account Intelligence tool.