“Security” will be the focus of online payments, banking and credit card sales in the months to come.
Since online payments and banking have been well accepted and are used around the globe everyday for everything from simple bills and 7 figure fund transfers, the companies running these services are now focused more and more on customer security.
Users are demanding services that do not leave them open to ID theft, fraud or the draining of account funds. Phrases and terms like “protect customers’ personal and financial information”, “providing a convenient, comprehensive set of security assurances” and “authenticating transactions when the customer is not present”, are becoming the catch phrases for the coming year.
Just this week PNC Bank announced a new online security feature to further protect their online banking customers from fraud and identity theft. Payment News reports:
“This authentication feature is part of the new comprehensive ‘PNC Security Assurance’ program, which is designed to protect the various ways customers conduct transactions today – via a bank branch, ATM, check card or the Internet. The program includes online payments guarantees, fraud prevention and detection tools, such as account activity monitoring, as well as the PNC Security Center, a new online, one-click resource about information security and identity protection.
“Protecting our customers’ information and identity is critically important,” said Thomas Kunz, director of payments and e-Business for PNC, which is ranked by CIO Magazine as one of America’s top institutions for its investment in technology. “We are addressing this issue through sophisticated security features that inspire confidence, and help our customers achieve their financial goals.”
By 2008, the Tower Group predicts that 44% of all retail transactions will be virtual and the magnetic stripe may be nearing the end of its card life.
Christopher Thom who is the Chief Risk Officer for MasterCard believed that, “…a new era of security and convenience had been ushered in.” with the evolution of the magnetic stripe on the credit card. However, today with online payments and the “… age of expanding global commerce, we are in the midst of yet another payments revolution.”
To quote Mr. Thom from a statement including online credit card transactions, “And not far off is the day when, through the assignment of an ever-changing access code, every transaction will be unique, incapable of being replayed and utterly useless to the criminal fraternity.” *CNET news.com
Howard Schmidt, former White House cybersecurity adviser and current president and CEO of R&H Security Consulting in a recent Businessweek article entitled “A Cybersecurity Pro Talks Shop” , made the following recommendations for small online companies on their basis security.
“The first thing companies can do is understand that they have to have a plan relating to security as part of their business plan. When someone submits a business plan for financing to a bank or the SBA or another entity, part of it should discuss their Internet security plan.
The software-based solutions that are out there—Symantec, McAfee, and others—have integrated security suites that are designed so that you don’t have to install 15 different programs. That’s one of the things that makes it affordable.
Also, you must have a training plan. If a company has a policy that allows employees to pick up personal e-mail on the corporate system, they need to use the same safeguards on their personal account as they would on their work account.
For instance, everyone should know that you can’t open and click on unexpected attachments. Don’t click through links on Web sites that come through personal or corporate e-mail. Don’t register the company e-mail address with Web sites. “
Hopefully in a few years, online payment systems and online banking will be ‘fraud’ proofed with added security measures such as offered by Pecunix.
