In the US, the FPTF is planning to create an effective transactions platform by 2020. In truth, the wide gate for hackers can be unleashed by creating faster payments. This scenario has occurred in other nations in the likes of Mexico and the UK.
When talking about several P2P transactions platforms, the United States of America has encountered fraud attacks. This can be found in Zelle and Venmo that provided fund payments between customers.
The inability to scrutinize faster payments led to the exploitations that the hackers perpetrated. The speed and fastness of moving payments also accounted for swift hacking activities. Security professionals have maintained that measures should be provided to reduce risks. This need customer education, strong authentication and effective fraud solutions.
Fraudulent Activity In Zelle:
The popularity of this P2P transactions platform has grown for several reasons. The direct embedment of Zelle in a plethora of mobile banking applications and high-profile advertising are some examples of why the company has grown in popularity.
In 2017, Zelle was able to transfer around seventy-five million dollars. This amount is two time bigger that what Venmo can transfer as the closest rival company. Hackers have seized the opportunity to attack Zelle customer and play over their understanding about this P2P2 transactions service.
While the hacking activities may not be too tough, but customers have been asked by scammers to purchase services or goods on platforms such as Craigslist. The hacker will not deliver the goods immediately after a customer may the payment.
The scammer will also benefit from the money sent and close the receiving bank account after the operation is over. This will even happen in split seconds before the customer understands what is going on. Financial institutions usually let go these hackers since the client willingly send the money.
Synthetic identity fraud and account takeovers are at the epicenter of these fraudulent faster transactions. Several data breaches have paved way for scammers to efficiently operate on this P2P service. These two fraudulent methods have plagued Zelle for a long time according to experts from the company.
Authentication And Validation Process:
To regulate faster transactions fraud, effective authentication and validation are required at the point of creating an account. There is every possibility for newbie clients to get discouraged if the authentication process remains massive or may take time.
An orchestrated, layered and risk-controlled approach is required to get the job done. Behavioral biometrics and device profiling are great methods that can be used in the authentication of faster payments. These methods can work effectively with traditional data to provide customers the best security measure they deserve.
Stronger password and other information may also be required to boost the authentication process well. Ask customers to verify email messages they receive is another way to help boost the authentication of the system.
Major Hacking Mitigation Steps:
1. Fraudulent prevention strategies that will work effectively for faster transactions should be available. This can be in the like of powerful authentication with behavioral analytics and fraud monitoring based device.
2. A kill switched should be created and set up for use immediately when attack quickly escalates.
3. Customers should be provided with communication and education to handle serious hacking problems. Clients should be given the opportunity to get the best techniques for fraud mitigation
4. A scalable architecture can be created and used to regulate for the amount of payments to be made. It can as well help to curb the overall level of fraud. There should be adjustment and scrutiny if the overall fraud rate has increased from time to time.
5. Additional payment sources can be linked to the platform to help tackle fraudulent issues.
Without any question, transactions are changing quickly and every day. If adjustments on how to handle this problem is not resolved, then more criminals will continue to steal money from people.