Why Payment Services Need Fraud Protection?
Financial institutions like banks and insurance agencies face novel security challenges as technology advances. Zimbabwe’s payment service providers are threatened by the growing rate of cybercrime in the nation. Cyber-attacks steal millions of valuable records. One estimate from the 2021 Report on Cyberwarfare is a loss in cybercrime damages worth 6 trillion USD. Prevention is the best cure – and safeguarding your business will benefit you and your customers in the long run. As hackers get more skilled, we must tailor our prevention strategies to shield transactions from fraud.
What Is Fraud In The Financial Sector?
Many payment services are transferring onto digital networks. Doing so is important for business development, efficient operations, and enhancing the tech-savvy customer’s experiences. Staying up with modern trends has its risks – and digital fraud is a big one!
Fraud in financial sectors involves illegal activities used to gain money or assets owned or held by financial institutions. If these activities are mediated by computers that are used to penetrate a private network, that’s electronic, or cyber-fraud.
Types Of Fraud
Direct Fraud: Direct forms of electronic fraud are identity theft (credit/debit card fraud), embezzlement and salami attacks. Fraudsters use manipulation and persuasion to acquire personal payment information and obtain finances or assets.
Indirect Fraud: Indirect forms include hacking, phishing, malware, pharming, and spam. Malicious software is used to commit money laundering, which often goes unchecked.
Impact Of Fraud On Business
Business standing: Financial fraud can defile a business in many ways. A vulnerability at any point of the transaction network is an opportunity for attacks. For businesses with several accounts, improper risk management destabilizes reliability and therefore, your position in the market.
Customer loyalty: Losing private data does not bode well for any company – more so for the financial sector. Customer retention is based on trust in the security of your services.
Additional Costs: Once the damage is done by fraud, it takes additional costs to repair and restore what has been lost. For large-scale damage, this may prove disastrous for a business.
What Is Fraud Prevention?
Fraud prevention comprises integrated strategies to detect fraudulent transaction activity and prevent damage for the customer and financial institution. Mitigating threats is possible with robust implementations like Financial Crime Mitigating and Anti-Money Laundering Systems provided by Kainotech.
Why You Need Fraud Prevention?
Risk assessment: Payment systems should be integrated with suitable vulnerability testing tools. It is crucial to identify the possible entry points to personal data and transactions – so you can take the proper measures to prevent an attack before it happens.
Stop attacks in real-time: When a cyber-attack is underway, an alert system facilitates immediate action. An effective fraud prevention strategy uses sophisticated fraud detection tools to secure transactions.
Government mandates: Several financial institutions come under the Bank Use Promotion and Suppression of Money Laundering Act. They are required to submit “Suspicious Transaction” Reports and to observe other “Anti-Money Laundering” measures.
Kanda implements robust banking technology which maintains the integrity of your financial services. It is a peer-to-peer local remittance product that enables low-risk, reliable transactions. We offer seamless integration with Kanda for secure, cashless transactions. Together with Kainotech, you can take your business to the next stage in development.