VISA CARD INTERNATIONAL INTENSIFIES PLAN TO CURTAIL ELECTRONIC FRAUD
One of the leading electronic payments solutions, Visa International is
to intensify efforts to curb fraud in the electronic payment system.
The company stated that the electronic industry has developed new
methods involving cloud-based Near Field Communication (NFC) mobile technology,
e-commerce and in-application systems, which would help make payments easier
and more accessible.
Addressing journalists at the Card Security in Lagos, the General
Manager, West Africa, for Visa, Ade Ashaye, said the Payment Card Industry Data
Security Standards (PCIDSS) has set risk management policies and programmes in
order to define the technical and operation requirements for cardholder data protection.
He explained that beyond these standards and compliances, the electronic
payments networks have taken steps to prevent fraud, while ensuring that risk
management assets are oriented to new threats and systems geared to resist any
attacks.
Ashaye noted that the adoption of EMV chip enabled cards, tokenisation
and point-to-point, encryption are technologies that would positively shape the
card industry in the coming years.
“The global shift towards chip-based EMV cards is the solid foundation
for fraud protection. The chip serves as a microprocessor embedded in the
plastic payment cards or mobile phones. Unlike magnetic stripe cards, the data
on the chip is dynamic and changes with every transaction, making it complex
for criminals to create counterfeit chip cards or fraudulent transactions,” he
noted.
He further stated that one
of the most important initiatives for strengthening security in payments was
the collective responsibility of all units in the payment ecosystem.
This, he said, is made up of financial institutions, merchants, and card
networks, adding that “every stakeholder should take measures to protect
consumers from fraud.”
He added: “Merchants and issuers who comply with EMV standards benefit from
the reduction of potential losses from fraudulent transactions. By upgrading
their payment terminals, business owners can significantly reduce the threat of
card fraud. The aim of the payment industry is to accelerate this evolution and
government regulation has helped speed the process.
“At Visa, our global fraud rate is less than 6 cents per $100
transacted. Undoubtedly, the industry has made great strides towards a safer
payments system along with the cooperation of merchants and government. However,
it is a continuous process, as innovations keep the momentum towards more
cashless transactions, so security must keep up with the pace and combat fraud
proactively.
“Today’s complex global payment systems are immersed in vast amount of
data, which is being used to develop an additional layer of defence that
detects fraudulent transactions before they take place. Data is one of the
strongest resources that card payment network can leverage and additional
layers of defence can be built by creating a profile of potential risks and a
general risk assessment.”
VISA CARD INTERNATIONAL INTENSIFIES PLAN TO CURTAIL ELECTRONIC FRAUD
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Thursday, June 30, 2016
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