E-wallets are growing globally with a growth rate of over 30 per cent, and it is predicted that internet-based payment methods will grow more than 47 per cent in global transactions by 2022. Buyers are not just using e-wallets; they are buying through debit and credit cards, which can be used for in-store and online transactions.
These offer simplified ways to make it easy for the consumer to pay at the desired time from a convenient place. The use of cash is getting out of fashion as companies are providing online options, but it is important for e-commerce firms to protect customer privacy and data, to protect cash flow and business.
Nowadays, customers find it comfortable to use digital methods, particularly mobiles that integrate several methods to handle money.
Websites like OnBuy in the UK, the taxi business -Uber and others are using mobile banking, where these methods drive the consumer towards a cashless future. The latest reports state the use of cash will drop by 21 per cent by 2026, as the buyers may use e-wallets and other mechanisms to transfer money.
However, the evaluation and growth of such methods to exchange money have raised concerns due to growing cybercrimes.
The Impact And Implementation Of New Regulations
The ECB report of 2018 finds an increase in card-based online frauds in situations where many crimes go unreported as the cost of reporting itself is high. Furthermore, the one-click mechanism of monetary transactions eases transactions.
Still, the fraudsters get the advantage of these uncomplicated methods, where they remove a number of traditional security barriers effortlessly to reach the target.
The hackers steal credit card data using malicious code injected into all the pages of the hacked site to get customer-related information. Websites process, validate and exfiltrate user data sent through POST requests to malicious domains in encoded format.
Such hacks target global customers; the worst are the supply chain hacks affecting many stores and businesses. The most vulnerable e-commerce websites are targeted by the mechanism where a skimmer is injected into the payment page, and then the entered data is stolen and sent to the hackers.
This is one of the most difficult hacks to identify where the users may get suspicious only when they are asked to re-enter the information.
Payment Service Directive issued rules to change the way the buyers were shopping online where the new rules improve the security of the customers, but the implementation will make authentication complicated, and some merchants are hesitant to execute as it may lead to lower conversions and lower profits.
The identifiers like social security and device IDs are not unique, and there is a need to have alternative identifiers that cannot be hacked or stolen, promoting stronger and easier online authentication mechanisms to handle payment frauds.