Currently, almost the entire world has moved online, not only for buying various goods, but also for services. Educational courses, sports training, and even consultations with some medical specialists - all of these can be obtained online. Accordingly, this increases the number of online payments.
The popularity of online payments for users is due to the following factors:
- Flexibility. Online payments can be made at any time of the day, providing maximum freedom of action;
- Speed. Most payment systems allow payment to be made in real-time, ensuring instant payment processing and fast delivery of goods and services.
- Transparency. If necessary, online payments provide users with the ability to track transactions and receive notifications for each transaction made on their account.
In addition, some payment systems provide users with additional features that are attractive to them. This includes the ability to set up recurring payments or purchase goods using the BNPL system
Modern Methods for Protecting Online Payments
With the increasing popularity of online payments, there has been a rise in the number of attempts by fraudsters to steal money by initiating false transactions. Today, there are several effective methods available that guarantee the safety of online transactions. Let's take a look at some of them:
3D Secure
3D Secure is an authentication system designed to reduce the likelihood of fraudulent transactions. It requires the user to enter an additional code (a one-time password) to confirm the transaction. The code is sent to the user's mobile phone or email address. The 3D Secure technology was developed by Visa and Mastercard to allow banks to ensure that the transaction is initiated by the account owner.
During online payments, the 3D Secure system adds an additional layer of security to the process. As part of the payment process, the system redirects the user to their bank's page where they are prompted to enter the additional confirmation code. Once the correct code is entered, the transaction is confirmed, and the payment is processed.
According to Visa, the use of 3D-Secure has reduced credit card fraud by 72%. Therefore, it is highly recommended for websites that offer online payments to use this system.
Tokenization
The concept of tokenization involves collecting all personal payment data on a separate server rather than on the user's device. The system then processes this information and replaces it with a token, which is sent to the server that handles payment transactions. Essentially, this process replaces a user's actual financial data with tokens to protect it.
Tokens are more secure than actual data because they do not contain any personal user information that can be used by fraudsters to steal money from their accounts. The use of tokens completely eliminates the risk of fraudsters accessing protected servers where payment data is stored.
Machine Learning
In many fields, artificial intelligence has found its place and online payment security is no exception.
This method is used to detect and analyze atypical user behavior, which may indicate fraudulent activity. Artificial intelligence is capable of successfully detecting suspicious activity based on the user's transaction history and identifying scammers who attempt to take over funds and personal data. Operations that are deemed erroneous are rejected.
Use of SSL Encryption
Secure Sockets Layer is a digital certificate designed to authenticate the validity of a website, and the protocol encrypts the information sent to the server using SSL technology. Decryption is only possible with the proper decryption key. SSL certificates protect data transmitted between the web server and the browser. This can be recognized by the green lock icon in the browser's address bar.
Continuous improvement of online payment security is essential, and the protection methods listed above can be used separately or in combination to ensure the highest level of security for online payments.
