Javelin Strategy and Research’s report showed that credit card fraud has decreased from $8.1 billion in 2017 to $6.4 billion in 2018. Although this is good news for the victims of fraud, seizures of accounts and fraud are increasing. Fraudsters use stolen identity cards to get loans, take out mortgages and buy real estate. The increasing number of account thefts is one of the reasons why the protection of your data is more important than ever. Financial institutions should also use the latest technology to protect banking processes.
Chip technology for credit card transactions
Security is one of the most important factors that people consider before applying for a credit card. People want to be sure that the security features on their credit cards protect them against fraud and theft. The chip technology, better known as EMC, is certainly more secure than magnetic cards. EMV credit cards contain small microchips that guarantee data security and make it difficult to clone foreign data. Fraudsters need to go to the physical circuit of the chip to obtain your bank details, which requires an investment of more than $1 million.
You can protect your credit card with a residential proxy by encrypting all of your account messages across all of your devices and ensuring that your online transactions are entirely secure.
Biometrics in the banking sector
The digitisation of the banking sector has increased the demand for fast and secure transactions. Financial institutions are turning to biometric technologies to improve security and meet consumer needs. Biometrics makes it possible to recognise account holders on the basis of biological characteristics such as voice and face recognition, fingerprints, iris and finger veins. This automated process replaces passwords, PINs and bank accounts, making authentication simpler and more secure.
Multi-factor authentication
The rapid growth of online payments has consequences for data theft and account fraud, putting consumers at high risk of financial loss for fraudsters. Fortunately, the banks have implemented a security feature called two-factor authentication to prevent the theft of online banking services. Authentication based on two factors requires you to follow normal procedures when opening bank accounts on your phone or computer. First enter a username and password, then you will receive a text message or email with a unique password that you must register to complete the process.
The multi-factor authentication process helps to secure your account even if fraudsters have access to your password or PIN. The concept is that you must have a password, a phone or a computer to log in and access the unique password. Biometric data can also be used for bi-directional authentication, as physical characteristics such as fingerprints, voice and face can be used to authenticate account holders in the financial sector.
Although this technological progress guarantees a sense of security, the number of data hackers is increasing. Fraudsters are looking for ways to access your information and the technology is not as reliable. It is therefore your responsibility to ensure the security of your data to prevent theft of credit cards and accounts.
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