Fintech security advances combat online payment fraud

Innovations enhance consumer confidence in digital transactions.

In an effort to address the pressing concerns of online payment fraud and enhance consumer confidence in digital transactions, industry leaders are emphasising the need for secure and reliable online payment solutions.

Rajan Narayan, CEO and Founder of Cyberbeat, said that with Asia's digital payments projected to hit almost $3 trillion by 2024, the demand for robust security measures against scams and card fraud has never been higher. 

Narayan highlighted the significance of consumer trust in digital transactions, stating, "The most important thing...is the convenience of the consumer to have the confidence to pay online."

To counteract fraud and cyber threats, Narayan revealed that innovative product solutions are being developed to safeguard online and card-not-present transactions. 

These solutions include virtual card tokens that protect consumers' actual card details from being exposed during online payments, a critical step in preventing card compromise.

“To fulfil a constraint, like for example, fraud, or stopping scams, then you [should] put additional types of constraints, like they cannot pay, cannot be set up for the next 24 hours, before you can pay and all that,” he said.

Further enhancing transaction security, Narayan introduced a dynamic credential verification system designed to prevent account takeovers. This system replaces traditional password-based authentication with dynamic passcodes generated for each user, significantly reducing the risk of unauthorised access. 

"These are all public information, hackers and scammers...do account takeover based on these details," Narayan explained, highlighting the vulnerability of conventional login methods.

Looking to the future, Narayan expressed optimism about the potential for Web3 payments and Central Bank Digital Currencies (CBDCs) to revolutionise the fintech landscape. He anticipates a shift towards consumer data ownership and value addition, leading to diversified payment and shopping experiences. 

Preparing for these advancements, new security technologies are being developed to facilitate offline authentication and enable secure, anonymous transactions without exposing personal card details.