PCI launches payment card cybersecurity effort in Middle East

The Payment Card Industry (PCI) Security Standards Council plans to expand its role into the Middle East as the volume of card-based payments and payment card fraud continues to rise in the region.

In April, PCI SSC assigned a regional director to the Middle East to work with regulators, banks and financial institutions, and service providers to implement measures to improve the security of card transactions. The move comes as global credit card fraud is expected to rise from $28 billion in 2020 to $36 billion in 2024, although the fraud proportion will fall slightly compared to transaction volume to 6.5 cents per $100 . Annual Nielsen Report released in December.

PCI Security Standards Council regional director for India and South Asia Nitin Bhatnagar said the PCI SSC plans to work closely with any organization processing payments within the Middle East payments ecosystem to focus on security issues.

“Cyberattacks and data breaches on payment infrastructure are a global problem,” he said. “Threats such as malware, ransomware and phishing attempts continue to increase the risk of security breaches. Overall, a change in mindset is required.”

The push comes as the payments industry itself faces major changes, with alternatives to traditional payment cards emerging and financial fraud rising in the Middle East.

It is predicted that the payments industry is likely to grow at an annual rate of 6.2% through 2027, which is lower than the 8.3% growth rate of the past five years, but still a healthy growth rate. Report released by Boston Consulting Group in September 2023. While card-based financial transactions continue to dominate, with point-of-sale and e-commerce transactions set to exceed $30 trillion by 2023, alternative payment methods are on the rise, totaling over $11 trillion by 2023 and doubling the pace Grow card-based payments based on BCG's global payments model.

According to BCG, there are currently more than 5,000 fintech companies worldwide with revenues of US$100 billion, which will increase to US$520 billion by 2030.

A digital wallet, not a plastic card

The Middle East is one of the regions where changes are most evident. According to the survey, consumers in the Middle East prefer digital wallets to bank cards as their favorite payment method, ranging from 60% to 27%; while consumers in the Asia-Pacific region slightly prefer bank cards, ranging from 43% to 38% . McKinsey & Company August 2021 report.

cyber criminals also follow these transformations, which worries businesses in the area. For example, seven in 10 United Arab Emirates business executives believe the risk of financial crime will worsen in the next 12 months, roughly the same as their U.S. counterparts, according to data from the United Arab Emirates.2023 Fraud and Financial Crime Report” Published by Kroll Consultants.

The PCI Security Standards Committee plans to adapt to the digital landscape and launch a mobile payment standard in November 2022. PCI Mobile Payments on COTS (MPoC)which provides standards for the development of mobile application-based payments.

“As mobile payments and contactless transactions become more popular, emerging technologies and innovations are reshaping our industry,” said Bhatnagar. “Organizations need to be aware of security risks and take them seriously because criminals will take it seriously – their only goal is to break into the organization and steal data and monetize it.”

Cybersecurity Education and Technology

Preventing payment fraud has become a priority in the Middle East and Africa (MEA) region, as efforts to improve financial inclusion have led to more mobile payments and digital bank accounts.

For example, the open source Tazama project is Build an anti-fraud platform for banks and governments Allowing them to use data on account holders and transactions to detect possible fraud. Meanwhile, Network International, a digital commerce platform in the Middle East and Africa, Fraud prevention solution powered by Mastercard’s AI Reduce fraud in digital transactions.

“Organizations should start prioritizing data security as an important factor in day-to-day business activities,” Bhatnagar said. “Investing in cybersecurity is equally important. Training employees and improving cyber hygiene will help organizations take steps in the right direction.”

Technologies such as generative artificial intelligence can both help and hurt payment security. While cybercriminals are increasingly using the technology to steal consumers' cash, businesses are also able to use the technology to catch more fraud schemes. Consulting firm Kroll said that two-thirds of senior executives (64%) currently plan to invest in anti-fraud technology, and more than half (56%) plan to increase cybersecurity budgets to address risks.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *