Privacy, Security & Stuff!! - Cashless Ambitions, Proceed with Caution
Cashless
Ambitions, Proceed with Caution
Petaling Jaya, June 2018
Globally there
is a growing movement towards becoming cashless societies. While these cashless
ambitions offer numerous benefits, Kaspersky Lab suggests proceeding with
caution, with an eye on tightening cybersecurity around the payment eco-system.
One fundamental aspect of becoming a cashless
society via digitalization is the increased adoption of online and mobile
channels that has been a boon for perpetrators of fraud, specifically
cyber-fraud. According to Forrester, there has been a 62% increase in payment
fraud since Oct 2015.
The increased touch points and the nature of
those channels lends itself nicely to cyber fraud by masking and hijacking the
identity of the mobile user. Consumers are demanding more seamless and hybrid
experiences, like combining commerce with payment, payment with social etc. At
the same time regulations are forcing some rule-leveling barriers and access to
consumer data is becoming democratized. This democratization of access and
information means there could more vulnerabilities through more players
creating more opportunities for cyber security breaches.
For perspective, global payments are expected
to exceed $2.3 trillion[1]
by 2019, and each year, with non-cash payments accounting for an increasing
share of this massive market. Cashless transactions are growing by 10%[2],
and according to one source, are likely to represent over one million transactions
every minute by 2020.
The increase is mainly driven by accelerated
growth in developing markets such as Malaysia, primarily driven by digitization
and alternate channels. Malaysia aims to be a cashless society by 2050
according to the National Transformational 2050 plan[3].
However, based on trends and adoptions rates, the nation could be a fully
cashless society much earlier with the mushrooming of digital payment or
E-payment platforms.
Digital payment or
E-payment is where payments are made using payments instruments that provides
cashless purchase for consumers such as mobile E-wallets, Internet banking, QR
codes and online payments. Currently there are 34 e-money issuers in Malaysia,
that have been licensed by Bank Negara Malaysia[4],
and the number is expected to increase.
Although cards remain the dominant and fastest
growing payment instrument, the landscape is poised for rapid change and market
disruption. The growing adoption of mobile payments, particularly among
millennials, combined with a rapid uptake in e-commerce “Card Not Present”
(CNP) transactions, and the emergence of non-banking payment service providers
(FinTech) are among the many factors causing turbulence and disintermediation
in discrete parts of banking and the payments landscape.
In addition,
E-payment speeds up the purchasing process in terms of speed, cost, reduced
staffing for businesses, while for customers it can be as simple as a tap or
scan of a mobile device. Plus, digital payments open up wide paths to online
merchants, giving businesses that employ this technology a competitive edge in
the market.
According to the Kaspersky Lab, 35 per cent of
people now use their smartphone for online banking and 29 per cent for online
payment systems, and these mobile-first consumers will increasingly be prime
targets for fraud. Newer successful payment types will see
more attack attempts as their profitability for attack increases like social
engineering attacks, data breaches,
spear phishing, false barcodes and account takeovers.
“Kaspersky Lab estimate that in 2018 more high-end APT malware for
mobile will be discovered as the widespread
penetration of e-payments has made the theft of electronic money a profitable
business for criminals. The E-platform provides and merchants need technology
that protects their clients from today’s threats and minimizes the costs linked
to reimbursing stolen money,” Yeo Siang Tiong, General Manager, SEA, Kaspersky Lab.
According to
a survey conducted by Kaspersky Lab, only 52% of financial companies and
46% of firms engaged in e-commerce believe they need to take enhanced measures
to protect financial transactions. Even fewer companies in this sector provide
protection for their customers’ devices.
“So it happens
historically that the endpoints are the weakest point of the transaction
chains, thus, they’re also favourite targets for cybercriminals. The lack of
attention from the businesses to such a vulnerable part is surprising,” Yeo added.
For organisations the Kaspersky Fraud Prevention platform is notable in
that it provides comprehensive protection of transactions not only from the
bank’s side but on the user’s devices as well. It also includes intellectual
services based on our many years of experience in the field of cybersecurity.
This combination will help financial companies secure their money and, more
importantly, their reputation.
Kaspersky Fraud Prevention is a possible solution that delivers
comprehensive, multi-layered security for online and mobile transactions that
have unique security technologies to enhance a mobile payment providers’
security and the security of their users.
The benefits provided by Kaspersky Fraud Prevention are complemented by
a range of additional services that Kaspersky Lab offers to help E-platform
providers improve their awareness of financial cyber-threats and how best to
combat them while marching towards cashless society.
Kaspersky Lab is also taking on the challenge
to create awareness about good cyber hygiene for individuals when it comes to
mobile security.
Kaspersky Lab worked with Tunku
Abdul Rahman University College (TAR UC) created new Malaysian Book of Record with
1,931 of its anti-virus for mobile devices, Kaspersky
Internet Security for Android and Kaspersky Password Managers for iOS were activated at an education and
awareness programme on June 5th in the
university college.
About Kaspersky Lab
Kaspersky
Lab is a global cybersecurity company, which has been operating in the market
for over 20 years. Kaspersky Lab’s deep threat intelligence and security
expertise is constantly transforming into next generation security solutions
and services to protect businesses, critical infrastructure, governments and
consumers around the globe. The company’s comprehensive security portfolio
includes leading endpoint protection and a number of specialized security
solutions and services to fight sophisticated and evolving digital threats.
Over 400 million users are protected by Kaspersky Lab technologies and we help
270,000 corporate clients protect what matters most to them. Learn more at www.kaspersky.com.
[3]
http://www.kln.gov.my/web/per_lima/e2017/-/asset_publisher/ME2g/blog/malaysia-to-be-top-20-country-globally-by-2050?redirect=%2Fweb%2Fper_lima%2Fe2017
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