Securing Financial Transactions: Best Practices Amidst Cyberattacks on Payment Processors

Today, we are not safe from the scourge of cybercrime. The FBI’s IC3, a platform for reporting Internet crime, noted a significant rise in monies lost from cybercrime. This shows that as businesses and customers continue to rely on online payment systems the risk of falling prey to cyber security threats increases too. 

If you fail to fortify your defenses, your business will suffer a lot in the face of a successful breach. Financial loss is the least of your problems, as you may never get more clients due to reputational damage and incessant legal drama that will leave you bleeding. Target’s 2017 multistate settlement of $18.5 million is a constant reminder of why secure online payments are a priority for businesses and consumers who bank on online payments. This underscores why businesses must implement robust cybersecurity measures to guarantee secured transactions in this digital landscape.

But it’s not just big companies who face this risk. SMBs also fall victim to cyber criminals, as many lack the resources and knowledge to set up threat mitigation strategies, leaving them vulnerable to attacks. In this post, we’ll discuss the best practices for businesses and customers to secure online payment against cyber attacks. 

The Threat Landscape

Generally, security systems rely on the same strategies to fend off attacks. Since the digital era, we’ve heard of incident response planning, access control, layered defense, continuous monitoring, and a host of other strategies that we wash-rinse-repeat to counter cyber risk. 

The same is true for cyber criminals who are always looking for new strategies to exploit our system vulnerabilities through:

1. Phishing attacks
2. Malware
3. Distributed denial-of-service (DDoS) attacks

A cyber attack on financial institutions is usually catastrophic, with the IMF quoting that companies lose over $100 billion a year. 

Recent cyberattacks on payment processors: 

• The BitMark attack. Over $150 million lost because of vulnerabilities in the online “hot wallets.”
• The Travelex ransomware attack. Company was forced to shut down systems and a $2.3 million ransom. 
• The BlueSnap attack. 340,000 people lost personal and financial data.

Best Practices for Securing Financial Transactions

What can businesses and consumers do to ensure secure payment processing in this digital Wild West? Experts recommend a multi-layered security approach that requires human vigilance and tech solutions. 

Compliance with Industry Standards

Your business should comply with industry bare minimums like Payment Card Industry Data Security Standard (PCI DSS). PCI DSS compliance sets industry requirements that safeguard payment card data using encryption, firewalls, and regular security audits. These guidelines significantly reduce the risk of your business’s vulnerability to data breaches.  

Awareness Training for Employees

Cybersecurity threats change constantly, and so should your employees’ awareness. Verizon’s 2021 report found that 85% of breaches involved a human element. It goes without saying that an educated staff can recognize and respond to perceived threats and create a human firewall that complements your business’s tech defenses.  

Invest in Network Infrastructure

Here, you can adopt several strategies:

1. Secure communication protocols
2. Data encryption
3. Regular penetration checking and a vulnerability assessment
4. An incident response plan

These strategies don’t come cheap but are necessary for financial services cybersecurity. Just the same, SMBs with smaller budgets can outsource security to experts through managed security services. This way, your business can tap into advanced tools and expertise you wouldn’t have initially afforded. An option you can exploit is cloud-based security solutions, a popular solution that offers scalable and on-the-go protection minus an initial hefty investment. 

Emerging Technologies and Trends

Artificial Intelligence and Machine Learning

As different types of cyberattacks emerge, so too must our defenses. New techs like artificial intelligence (AI) and machine learning (ML) can now detect and respond to an attack as it happens by assessing gazillions of data, identifying patterns that show cyber risk, and taking swift action to mitigate the threat. So efficient are these tools that their revenue forecast for 2028 is $60.6 billion.   

Blockchain

Another promise of secure transactions is Blockchain, the technology behind crypto. It is decentralized with an unchangeable ledger system, making it hard for cyber criminals to tamper with transaction records. BitPay and Circle are already enjoying this blockchain-based solution for secure online payments.

Tokenization

Giant mobile transaction companies Apple Pay and Google Pay use tokenization to protect payment card information. Tokenization replaces sensitive data like credit card information with a randomly generated token. Even if a hacker manages to breach your systems, they’ll find fake information that is meaningless rather than exploitable data. 

Biometric Authentication

Passwords and pins are no longer the go-to as biometric authentication methods take over. Today, fingerprint scanners and facial recognition add that unique biological characteristic that makes it hard for hackers to impersonate someone.

Tips for Consumers

Ensuring secured transactions isn’t just the responsibility of businesses – consumers also have a role to play. As a consumer expecting secure payment processing online, you should do the following:

• Use a strong password generated by the password manager in your browser. As a rule of thumb – never use the same password across multiple accounts. When setting a password, it is best practice to let the password manager generate and store your unique and complex password.
• Use two-factor authentication (2FA). Most people use 2FA as an extra layer of security. After you enter a password, a code is sent to your phone or email handle before accessing your account. This makes it hard for an attacker who doesn’t have access to your phone or email to gain unauthorized access.
• Check on your accounts. Check your bank and credit card statements for any foul play when you can. If you see anything unusual, report to your financial institution for direction. Fraud alerts can be a lifesaver if you don’t regularly check your financials.
• Shop from secure websites. Look for secure online payment websites by finding for the ”https” prefix in their URL and a padlock icon in the address bar. These show that the website uses secure data protection strategies to safeguard your data.
• Transacting on public Wi-Fi. Hackers prey on unsuspecting victims who conduct sensitive financial transactions over public Wi-Fi networks since they are unsecured and vulnerable to snooping. When and if you must use public Wi-Fi, use a virtual private network (VPN) that masks your traffic.
• Personal information is personal. Today’s digital era requires caution when sharing information such as your Social Security number, credit card info, and banking information. Only share with verified and trusted sources.
• Stay informed. As we’ve seen, different types of cyberattacks come up every day. So, the more you know about potential threats and how to protect yourself, the better placed you’ll be to stay safe online. You can use reputable cybersecurity blogs and sign up for alerts to stay ahead of malicious attacks.
• Use secure payment methods. PayPal, Apple Pay, and Google Pay are leading secure payment options worldwide. They protect your money with top security strategies like tokenization and biometric information.    

The days of neglecting cybersecurity are long gone. It is now an absolute necessity in this brave new era of digital transactions. As businesses and customers of online payment, we ought to prioritize the safety of our online transactions as attackers adapt to more sophisticated strategies.  

For businesses, a multi-layered security approach, following industry standards, and taking advantage of emerging tech will strengthen our defenses against a constantly shifting threat landscape. Important practices such as stronger passwords, two-factor authentication, and monitoring can help users protect their financial information. 

Ultimately, cybersecurity is a shared responsibility. For its success, continual partnership and vigilance among all participants in the digital economy are necessary. An informed team effort can create a more secure financial ecosystem for everyone involved.

We can safeguard your financial transactions with the right mindset, knowledge, and tools. The stakes are higher now than ever, and Segpay Payment Processing is prepared for the challenge with new and innovative solutions. Contact Segpay to discuss your needs today.