Enhancing safeguards against fraud and scams in cashless payments

The surge in cashless payments has brought with it a significant rise in online fraud and scams. In 2023, losses from such incidents reached between VND8-10 trillion (US$322-402 million), marking a 50% increase from the previous year.

Experts point to a lack of awareness about online fraud and inadequate security technologies as key reasons behind this loss. New technologies like Deepfake have allowed scammers to manipulate victims with increased subtlety, while outdated security methods, such as passwords and SMS OTPs, continue to expose users and businesses to risk.

Solutions to safeguard users

As fraud becomes more sophisticated, banks and financial institutions must adopt stronger authentication methods. In the "Into the Cyberverse" podcast, Roger Kuo, CEO of HiTRUST International, emphasized the importance of FIDO2, a passwordless authentication protocol that relies on public key cryptography. FIDO2 eliminates the need for passwords and SMS OTPs, offering a more secure and user-friendly authentication process.

Despite its growing adoption among financial institutions, Kuo acknowledges that shifting user habits and embracing new technologies will require ongoing effort from both businesses and consumers.

Experts share insights during VinCSS' "Into the Cyberverse" podcast. Courtesy of VinCSS

HiTRUST also highlights the value of 3-D Secure, a protocol used by banks worldwide that ensures only the cardholder can complete a transaction, offering greater protection for customers and shifting the liability for fraud losses onto the issuing bank.

In addition, AI-powered solutions that track user behavior and transaction patterns are helping businesses detect and prevent fraudulent activities, further reducing the risks associated with online payments.

Raising awareness

Along with adopting advanced security technologies, businesses must focus on raising end-user awareness. In the "Into the Cyberverse" podcast, Kitty Cao, Global Marketing Head of HiTRUST, shared tips on protecting personal information, such as avoiding the sharing of sensitive data and utilizing secure payment methods like virtual cards or Apple Pay.

Listeners of the "Into the Cyberverse" podcast can learn more about how to safeguard themselves against the growing threat of online fraud and scams