Fraudsters have grown adept at finding debit cards’ weak points, and merchants are struggling to keep up. Losses due to false credit and debit card declines — in which merchants reject legitimate orders on the mistaken belief that they are fraudulent — grew to $118 billion last year and are projected to reach $443 billion by 2021. Fraudsters are increasingly savvy, though, and retailers cannot afford to relax much.

Cybercriminals have more opportunities than ever to swipe debit card numbers and PINs from online consumers, and false websites, large-scale data breaches and skimming tools can compromise account information. Debit card fraud can have far-reaching consequences that extend beyond those of credit card fraud, as debit technologies link directly to customers’ bank accounts. This connectivity can make debit a valuable asset for consumers who want protection against the overspending encouraged by credit, but it can also prove dangerous if bad actors take control. It is, therefore, critical for banks and payment providers to bolster the protections they offer debit cardholders, especially as fraudsters’ attacks grow more complex and varied.

Debit card providers must protect against skimming tools targeting both online and brick-and-mortar purchases, guard against malicious website links and verify customers properly. They must also ensure that their security measures can keep up with cybercriminals capable of snagging cardholders’ details in milliseconds. Preventing or minimizing damage caused by fraud is critical to maintaining customers’ trust and loyalty, after all.

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Originally posted by:

www.pyments.co.uk

February 3rd, 2020