Allen Kopelman, CEO of Nationwide Payment Systems Inc. and host of B2B Vault: The Biz-to-Biz Podcast, discusses the rising levels of fraud in digital commerce. A study by LexisNexis found that 60% of ecommerce merchants and 53% of retailers reported higher levels of fraud over the past twelve-month period. Criminal activities are often observed during new customer sign-ups and payment transactions, highlighting the need for business owners to take a proactive approach to monitoring and detecting fraud.
In response to the increasing threats of crime, both in-store and online, merchants are seeking advice on how to keep their businesses secure in the digital-first era. Kopelman emphasizes the importance of on-premise inspections, velocity settings, control of access points, blocking phishing and smishing attacks, controlling permission levels, and implementing multifactor authentication. These measures can help protect businesses from cyber threats and ensure compliance with industry standards.
One key aspect of security that Kopelman highlights is the need for businesses to continuously monitor digital payments and buy-now-pay-later transactions, which account for 37% of fraud according to the Lexis Nexis Risk Solutions report. Criminals are using compromised consumer data to forge synthetic identities and conduct fraudulent transactions. By staying vigilant and implementing security measures, businesses can protect themselves from the financial and reputational damage of a security breach.
The Internet of Things (IoT) also presents a growing threat to businesses, as hackers can exploit connected devices such as smart TVs, wearables, printers, and security cameras. These devices provide hackers with another attack surface to target, making it essential for businesses to take a proactive approach to security. Kopelman recommends implementing multifactor authentication and restricting access to devices and networks to mitigate the risk of a security breach.
Overall, the message from Kopelman is clear: businesses must prioritize security in the digital age to protect themselves from the increasing threats of cybercrime. By implementing proactive security measures, such as monitoring transactions, controlling access points, and using multifactor authentication, businesses can reduce their risk of falling victim to fraud and cyber attacks. In doing so, they can safeguard their revenue, customers, and reputation from the costly consequences of a security incident.
