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Listen to expert insights on how to help businesses defend against increasingly sophisticated fraud and scams in online payments to protect customer interests.
Why Are Customers Losing Money?
The rapid growth of cashless payments in recent years has led to a surge in online fraud and scams. In 2023 alone, the total amount lost to online scams reached approximately 8,000 to 10,000 billion VND, a 50% increase compared to 2022.
Many experts believe that the primary reason for this unjust loss is the lack of awareness about online fraud and scams. Particularly, alongside traditional phishing tactics, the rise of technologies like Deepfake has enabled fraudsters to manipulate victims more subtly, making it easier for many to fall into traps.
The second reason relates to the inadequacy of security technology in online payments to effectively combat fraud and scams. Specifically, many banks and financial institutions continue to rely on passwords and SMS OTPs for authentication – methods that have been shown to be insecure, inconvenient for users, and inefficient for businesses. Furthermore, numerous organizations have yet to implement advanced security technologies to address the growing sophistication of high-tech fraud and scams.
What Shields Help Businesses Protect Users?
In light of increasingly sophisticated fraud traps, many banks and financial institutions need to transition to stronger authentication methods. But what is the optimal user authentication method available today?
In the “Into The Cyberverse” podcast – a program focused on cybersecurity by VinCSS – Roger Kuo, CEO of HiTRUST International, a pioneer in advanced payment security solutions, expressed his confidence in FIDO2. This passwordless authentication protocol, based on public key cryptography and introduced by the FIDO Alliance in 2018, offers a simple, convenient, and swift authentication process, allowing users to say goodbye to passwords and SMS OTPs. However, while FIDO2 is increasingly being adopted by reputable financial institutions worldwide, he acknowledges that changing habits and adopting new technology is a long journey, requiring effort and collaboration between businesses and users.
Notably, HiTRUST’s leadership also discussed 3-D Secure – a widely used security protocol among banks globally. This three-domain security technology, which includes the Acquirer, Issuer, and Interoperability domains, ensures that only the cardholder can complete a transaction. Importantly, the responsibility for any losses falls on the issuing bank, providing absolute protection for customers in the event of fraud while enhancing the business’s reputation.
Additionally, AI-powered solutions that collect data from user devices and transaction habits serve as invaluable allies in helping businesses identify fraudulent activities from unauthorized access sources, thereby mitigating risks related to fraud and scams.
HiTRUST notes that the combination of passwordless FIDO2 authentication, 3-D Secure, and AI-driven risk detection mechanisms not only provides customers with a more convenient and secure online payment experience but also significantly reduces cybersecurity-related losses for financial businesses.
Raising Awareness Remains a Top Priority
Alongside the adoption of advanced technologies, businesses must continually enhance end-user awareness, as they represent the weakest link in the security chain. Educating users about online threats and how to protect personal information will create a safer transaction environment for both businesses and customers.
On the “Into The Cyberverse” broadcast, Kitty Cao, Global Marketing Head of HiTRUST, shared valuable insights on how users can protect their information, such as refraining from sharing sensitive details like identification information, login credentials, or financial data with anyone. Additionally, credit cardholders should only use products and services from card-issuing banks that implement 3-D Secure technology, keep their card numbers and CVV confidential, and utilize secure payment methods like virtual cards or Apple Pay.
Tune in to the “Into The Cyberverse” podcast to hear specific insights from HiTRUST about online transactions and how to protect yourself and your assets against the rising tide of online fraud and scams.
