The Internet of Things is making the world more digitally driven and digitally connected. It’s estimated 50 billion smart devices will be used all over the world by 2020. Of course, this will highly add to the convenience of making payments, enabling consumers to easily pay how they want and when they want. However, the issue of secure payment transactions will still be a critical point to take into consideration.
Connected devices with integrated payment functionality are becoming more and more common and widespread. Fraudsters are happy that things will develop this way: they’re looking forward to exploiting an emerging technology with security holes experts have never thought of.
According to a recent 2017 Identity Fraud Study from Javelin Strategy & Research, identity fraud happened to 15.4 million Americans in 2016. Consumer cyber and personal security is at risk, and the risk is growing and becoming much larger as the number of consumers using their smartphones to access their home security systems is increasing.
With this in mind, you should turn to a reputable payment processor like emerchantbroker.com to get ultimate chargeback protection for payment processing. EMB is voted the #1 high risk merchant services provider in the US and has an A+ rating with the BBB. In partnership with Verifi and Ethoca, EMB offers unmatched chargeback prevention and protection services in the industry.
According to the author of a new white paper from a payment solution provider in the field, while biometrics will likely play a major role in authenticating users of connected devices, the use of multiple layers of authentication is crucial.
Passwords should automatically be changed on privileged accounts. However, 20% of companies have never applied this. In addition, solution providers mustn’t think only about the devices; it’s critical to take into account the security of the apps running on the devices, the servers connected to them and the network they’re running on.
IoT technology hasn’t been around for many years, and the fraud detection and prevention strategies governing the IoT technology are new as well. E.g., the PCI (Payment Card Industry) Council is still developing a framework for to ensure payment security when IoT devices are involved.
One of the fraud prevention managers in the field notes the IoT can undoubtedly bring unmatched convenience into how consumers conduct their financial lives. For every convenience, there is a type of exchange. However, neither the financial industry, nor the consumers who rely on it can afford for security to become that exchange.