Payments Guys Acting Strangely, Fraud Growing

Tuesday, March 29th, 2022

COVID-19 has forced commerce to fall into chaos. The move to the online space has accelerated. Regulatory actions scrutinizing the payments space emerged. The payments world witnessed obscure partnerships, poorly audited transactions, flows, and financial results. In addition, there has been a rise in some specific types of fraud. It’s critical to keep your finger on the pulse of what’s happening in payments, including credit card payment processing space, and take efforts to tackle fraud effectively by applying stronger defense measures. 

Partnerships During COVID-19

In 2020, Visa decided to purchase Plaid in part so there would be no existential risks associated with its own business in terms of online debit. Visa was ready to pay about $5.3 billion for Plaid, thus making the acquisition the second largest in Visa’s history. This way, Visa aimed to eliminate the innovation-related risks that would threaten Visa’s debit business. Overall, debit-card use has surged during COVID-19. 

Another happening worth mentioning was that WireCard started quickly building a global payment-processing business. As a result, the company turned into the darling of German regulatory agency BaFin and rival to US payments high-fliers.

These are only the two of the partnerships registered during COVID-19. Let’s move forward to discuss fraud. 

Fraud During COVID-19

The significant rise in payment-processing fraud makes it more important for companies to use strong anti-fraud programs. Besides, it’s critical to apply proper cybersecurity measures to eliminate risks and avoid legal action and regulatory fines as much as possible. 

Based on McKinsey’s 2020 Global Payments Report, by 2025, global payments revenue will make up about $2.5 trillion. Mobile payments are further going to increase and credit cards are going to become ubiquitous. The rise of these types of payments means an increase in payment-processing fraud. 

During COVID-19, client-side attacks turned out to be one of the most widespread risks for companies conducting transactions online. These attacks include digital skimming, formjacking, clickjacking, and ad injection. They also cause vulnerabilities in the digital supply chain.

According to the NCSC, 4,000+ retailers in the UK could be victimized by client-side attacks. In 2021, formjacking represented 61% of web breaches in the country. Moreover, British Airways registered a $200 million initial fine for GDPR non-compliance caused by a client-side attack.

To fight fraud, companies should well understand and prioritize the risks, focus on third parties, never ignore the client-side attacks, concentrate on solving the problem by detecting it on time, and avoid thinking it won’t happen to them. 

To find the right merchant-processing services and fraud-prevention techniques, consider working with a reputable payment-comparison specialist like BestPaymentProviders.co.uk. Best Payment Providers UK is particular about every detail associated with payment-processing companies to guarantee the best deal for your eCommerce business. With Best Payment Providers UK, you can enjoy quick access to the best terms, rates, and the most advanced merchant services, including credit card payment processing, in the country.

Payments Guys Acting Strangely, Fraud on the Rise

The COVID-related period witnessed strange partnerships in payments, concerted payment regulatory measures, and a rise in fraud. You should take a thoughtful, comprehensive approach to combat fraud and pave a path toward long-term success.