If you want to start your own payment gateway business, you should follow certain tips to reduce the incidents of payment fraud. Visit us at: https://itio.in/

1. How to Reduce Payments Fraud?

2. An Introduction
In today's new normal, there has been a massive surge in the count of digital payments
among consumers worldwide. Unfortunately, they also create opportunities for fraud by
hackers and malicious entities. If you want to start your own payment gateway business,
you should follow certain tips to reduce the incidents of payment fraud.

3. Impact of Payment Fraud
According to Juniper Research, the total cost of eCommerce fraud to merchants exceeded
US$48 billion in 2023 as compared to US$41 billion in 2022. It is expected that the count is
expected to exceed US$362 billion globally between 2023 and 2028, with US$91 billion
alone in 2028.

4. How does Payment Fraud Happen?
Payment fraud usually starts with a fraudster or hacker gaining unauthorized access to
payment card data, such as through a phishing attack that would have tricked individuals
into providing card data. Hackers or fraudsters may capture card data in many other ways
such as skimming (the installation of a device on a payment terminal to record card info
and PINs).

5. Some Security Tips
• Carefully evaluate merchant services apps: You should perform a comprehensive risk-
scoring analysis when onboarding new merchant accounts in compliance with
regulations such as Know Your Customer (KYC). Thereafter, you need to carefully
conduct ongoing monitoring of their activities to watch for suspicious events or
activities.
• Flag unusually large transactions: You should be vigilant to identify unusually large
orders or transactions, and flag any that appear suspicious.

6. Some Security Tips
• Use AI-powered fraud identification and prevention solutions: You should leverage
artificial intelligence (AI) to proactively identify and curtail fraud. It is equally important
to identify high-risk or malicious customers and flag new accounts to prevent purchases
by fraudsters who have committed identity theft.
• Conduct detailed background checks: You should conduct background checks on
employees who handle payments of any kind or have access to sensitive payment data.

7. Some Security Tips
• Train your employees: You should regularly educate your employees about payment
fraud and different ways to proactively identify and curtail suspicious activity.
• Stay updated with the latest fraud trends: You should regularly stay updated with the
latest payment fraud trends and invest in the latest, proactive fraud detection tools,
functionalities, and technologies.

8. Conclusion
Today, payment fraud has become a nuisance for individuals, businesses, and the world
economy. With the growing popularity and surge of online transactions, fraudsters are
becoming increasingly sophisticated in their techniques (such as account takeover, identity
theft, money laundering, merchant fraud, clean fraud, payment interception fraud, friendly
fraud, card not present fraud, authorized push payment fraud, and card fraud), making it
more difficult than ever for individuals and businesses to detect and prevent fraudulent
activity.

9. THANK YOU