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Understanding the Risks of Insecure Payment Processing

Published

3 weeks ago

August 23, 2024

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By Gideon Ayogu

Businesses across the world are losing customers and huge sums due to a rise in payment fraud in the last few years. A recent report highlights an alarming 88% global increase in payment fraud between December 2021 and March 2023. In an ever-evolving digital world, payment processing is at the heart of every business transaction. However, each transaction carries significant risks that must be effectively managed and mitigated. Consequently, ensuring robust security in payment processing has never been more critical.

With the increasing sophistication of payment fraud, many businesses are becoming targets for hackers and cybercriminals who exploit insecure payment processing systems. These attacks can lead to severe consequences, including financial losses, reputational damage, legal repercussions and a significant loss of customer trust.

This SeerBit blog post highlights the potential risks and consequences of neglecting security in payment systems and emphasises the importance of partnering with a trusted payment solutions provider to effectively mitigate these risks.

Potential Consequences Of Insecure Payment Systems

There are numerous consequences that your business will suffer if you become a victim of fraud due to insecure payment systems. Some of these are discussed below:

Financial Losses

The lack of strong security measures in your payment systems can leave your business vulnerable to a wide range of fraud, including unauthorised transactions, identity theft, and credit/debit card fraud. These threats often lead to significant financial losses for businesses. A 2023 report by IBM revealed that the average global cost of a data breach has risen to $4.45 million, covering both direct expenses like fines and legal fees, as well as indirect costs such as customer attrition and lost business opportunities.

In 2023, three Nigerian fintech companies lost more than N5 billion to hacking incidents between Q1 and Q3 of the year, while another lost N800 in just one week, according to media reports. These alarming incidents highlight significant vulnerabilities within the security architecture of payment systems.

The rise in security breaches and fraud cases in recent years, along with businesses being compromised through their connections to insecure platforms, underscores the critical importance of secure payment processing. This highlights the need for businesses to partner with a trusted payment solutions provider.

Reputational Damage

Reputational damage from a data breach or fraud often has a longer-lasting impact than the immediate financial losses. Today’s customers are more aware and concerned about the security of their personal and financial information than ever before.

A single breach can severely undermine customer trust, leading to decreased sales and long-term brand damage. Regaining this trust can be extremely challenging, if not impossible, for many businesses. This loss of customers and revenue underscores why secure payment systems are crucial for business survival and growth.

Legal Repercussions

Businesses that experience a security breach or fall victim to fraud may face significant legal repercussions, many of which could be avoidable. In cases of payment fraud, affected stakeholders might sue the business, or the business may need to engage in expensive legal proceedings against those responsible.

Additionally, a security breach could indicate non-compliance with industry best practices or current security standards, such as PCI DSS (Payment Card Industry Data Security Standards), potentially resulting in substantial fines and other legal consequences.

How To Secure Your Payment Process And Protect Your Business Against Fraud

The operational disruption that a fraudulent activity or a breach of your security system can cause will lead to a loss of productivity and efficiency, alongside other consequences already discussed in this post. Hence, you should place a premium on securing your payment process and protecting your business against fraud. One of the best ways to achieve this is by relying on a secure payment gateway.

A payment gateway is a technology that captures and transfers payment data from the customer to the acquiring bank. It acts as an intermediary between your business website and the financial institution, ensuring the secure transfer of sensitive payment information. Payment gateways authorise payments for e-transactions, enabling businesses to securely accept credit card payments, digital wallets, and other forms of online payment.

Key Security Features of Payment Gateways

Below are some of the key security features a payment gateway must incorporate to ensure secure transactions:

Encryption and SSL: Encryption converts data into a secure code to prevent unauthorised access. Secure Socket Layer (SSL) certificates ensure that data transferred between the customer and the merchant is encrypted and secure.
Tokenization: Tokenization replaces sensitive payment information with a unique identifier or token. This token is used during transactions, keeping the actual payment data secure and reducing the risk of data breaches.
PCI DSS Compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets security standards for organisations handling credit card information. Compliance with PCI DSS ensures that payment gateways adhere to stringent security measures to protect cardholder data.
Fraud Detection and Prevention Tools: Advanced tools such as CVV verification, address verification, and AI-based fraud detection systems help identify and prevent fraudulent transactions, safeguarding both businesses and customers.
Trustworthiness: Ensure that the payment gateway has a proven track record and industry certifications to back up its claims of security and reliability.

When selecting a payment gateway for your business, it is crucial to prioritise these key features before trusting them to process your transactions. A secure payment gateway ensures that your payment systems and processing are secure and insulates your business from fraud and hacking attacks.

Payment gateways lacking these essential features should not be considered for your business.

Benefits of Secure Payment Gateways for Businesses

A secure payment gateway such as SeerBit offers numerous benefits for businesses:

Enhanced Customer Trust and Satisfaction: A secure payment gateway builds customer confidence, encouraging repeat purchases and fostering loyalty.
Reduced Fraud and Chargebacks: By minimising fraud-related losses and reducing chargebacks, businesses can protect their revenue and maintain financial stability.
Regulatory Compliance: Secure payment gateways ensure compliance with legal and regulatory standards, helping businesses avoid penalties and legal issues.
Competitive Advantage: Prioritising security can serve as a unique selling point, setting businesses apart from competitors and attracting security-conscious customers.

Conclusion

In today’s digital economy, the impact of a security breach or payment fraud can be devastating for businesses. As the digital landscape evolves, so do the risks associated with it, making it crucial for businesses to choose secure payment systems proactively. Secure payment gateways are vital for maintaining both the success and credibility of any business in the modern digital age. By prioritising robust security measures, businesses can safeguard themselves and their customers, build trust, and ensure seamless transactions.

At SeerBit, we are committed to providing top-tier security to protect your business and customer data, while also delivering a smooth and efficient payment experience.

Discover how we can enhance your payment processes today!

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NIPR Appoints Rasheed Bolarinwa As Chairman of FinanceHub Committee

Published

1 week ago

September 6, 2024

Ugo Onwuaso

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Nigerian Institute of Public Relation’s (NIPR) governing council has announced the appointment of Rasheed Bolarinwa as the Chairman of its newly established FinanceHub Committee.

Rasheed Bolarinwa

Bolarinwa, who serves as the President of the Association of Communication and Marketing Professionals in Banks (ACAMB), will lead the committee aimed at enhancing sustainable Public Relations practices within the banking, insurance, and pensions sectors.

Bolarinwa, currently the Head of Brand Management and Corporate Communication at Polaris Bank, brings extensive experience from journalism, public relations, and the financial sector.

His leadership is expected to drive significant improvements in PR practices across these financial sectors.

The FinanceHub Committee, which includes experts from banking, insurance, and pensions, is part of NIPR’s broader initiative to strengthen public relations across various sectors.

The committee’s formation aligns with NIPR’s strategy to foster sustainable and impactful PR practices in these critical areas of the economy.

In addition to Bolarinwa, NIPR has appointed other chairpersons for newly created sectoral hubs.

Mrs. Thelma Okoh will lead the Maritime Hub, Dr. Jossy Nkwocha will head the Energy Hub, and Mr. Basil Agboarumi will oversee the Aviation Hub. Dr. Ahmad Sajoh has been appointed to lead the Anti-Corruption and Consumer Protection Hub, while Miss Chimdi Neliaku will head the Young Practitioners Hub.

The appointment letters, signed by Uzoma Onyegbadue, Registrar/Secretary to the NIPR Governing Council, reflect NIPR’s commitment to enhancing public relations practices across these sectors.

NIPR Appoints Rasheed Bolarinwa as Chairman of FinanceHub Committee

At the inauguration of the new chairpersons and committee members, NIPR National President Dr. Ike Neliaku praised the appointees, highlighting their expertise and dedication.

“Your appointments are well-considered and reflect the confidence the NIPR council has in your abilities to advance the objectives of the Hub,” Neliaku stated.

He expressed enthusiasm for collaborating with the new appointees and emphasized the council’s support in driving positive change in public relations practices within their respective sectors.

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Nigeria Police Arrest Operator of Pirate Domain Streaming MultiChoice Content

Published

1 week ago

September 5, 2024

Comms Week

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The operator behind www.score808.com.ng, a website notorious for streaming MultiChoice content illegally, has been arrested by the the Intelligence Response Team (IRT) of the Force Intelligence Bureau of the Nigerian Police.

The Police said that the arrest is a significant victory against internet piracy.

This domain was allegedly infamous for illegally streaming MultiChoice (SuperSport) content, drawing millions of visits from across Africa and beyond.

According to a statement, the arrest, which took place recently, in Osogbo, Osun State, marked a major milestone in the ongoing battle against intellectual property theft and online streaming piracy.

The capture followed an extensive investigation that spanned several months.

Despite efforts to evade detection by frequently changing locations, the IRT’s relentless pursuit ensured the eventual arrest.

The suspect remains in Police custody, with substantial evidence pointing to involvement in large-scale illegal streaming activities.

If convicted, the suspect could face a prison sentence of up to five years, the statement added.

“he scale of the illegal operation is evident from the website’s traffic statistics. The domain www.score808.com.ng garnered 3.1 million visits globally, with over 1.2 million visits originating from Africa alone,” it added.

Frikkie Jonker, director of Broadcasting and Cyber Piracy at Irdeto, expressed appreciation for the Nigeria Police’s dedication and support in this operation.

He commented, “All forms of piracy continue to pose a significant threat to the creative industry. At Irdeto, we are fully committed to addressing every facet of piracy, whether it occurs online or through other means. The arrest of this notorious pirate is a testament to what can be achieved when law enforcement agencies and private sectors work hand in hand. We sincerely appreciate the Nigerian Police’s unwavering support, which has led to this positive outcome.

“Online streaming piracy is not only a criminal offense but also poses significant risks to customers. Users who access pirated content are often exposed to malware, phishing attacks, and other cybersecurity threats that can compromise their personal information. Additionally, by engaging with illegal streams, customers inadvertently contribute to the erosion of the creative industry, undermining the livelihoods of thousands of people involved in content production and distribution.

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Imoke, Buratai, Maida, others to headline GOCOP 2024 conference in Kogi

Published

1 week ago

September 5, 2024

Ugo Onwuaso

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Senator Liyel Imoke, former Minister for Power and Steel, has been confirmed as the keynote speaker at the annual conference of the Guild of Corporate Online Publishers (GOCOP) scheduled for October 3, 2024 in Lokoja, the Kogi State capital.

GOCOP

This is just as attendance and participation by other highly fecund speakers and panelists have been confirmed.

They comprise, among others, former Chief of Army Staff, Lt-General Tukur Yusuf Buratai (Retd); the Executive Vice Chairman, Nigerian Communications Commission (NCC), Dr. Aminu Maida; a Professor of Political Science at the Federal University Lokoja, Rotimi Ajayi, and an edutainment communicator and veteran broadcaster, Ms Debrah M. Ogazuma.

Chairman, 2024 Conference Planning Committee, Danlami Nmodu, mni, disclosed these in a press statement issued by the Publicity Secretary of GOCOP, Sir Remmy Nweke.

According to the statement, Nmodu said that Imoke would lead discussion on the theme: “Nigeria: Tackling Insecurity, Power Deficit, and Transitioning to Digital Economy” at the Reverton Hotel, GRA Lokoja, Kogi State on Thursday, October 3, 2024 by 10am.

Senator Imoke was at a time Special Adviser to President Olusegun Obasanjo on Utilities and Chairman, Presidential Committee on OMPADEC and NEPA Technical Boards.

In 2007, Senator Imoke was elected Governor of Cross River State and served his people in that capacity from 29 May 2007 to 29 May 2015.

Imoke studied Law at the University of Buckingham, England for his LLB degree in 1985, and then studied at the American University in Washington, D.C., where he gained a master’s degree in Law. He completed his legal education at the Nigerian Law School, Lagos, in 1988.

He was earlier elected a Senator in 1992 and was in the National Assembly until the military incursion, following the annulment of the presidential election of June 12,1993.

He then went into private enterprise in 1993 as a Managing Consultant.

Retired Lt-General Buratai would be joined by Dr. Aminu Maida as Guest Speakers.

The statement stated that Professor Ajayi would join other panellists, including a former Commissioner in Kwara state and National Coordinator of West African Media Network (WAMNET), Ms Ogazuma.

The 2024 GOCOP conference is the 8th in the series and would be chaired by former Nigeria’s Ambassador to Spain, Yusuf Mamman.

The 2023 edition was chaired by the JAMB Registrar and Chief Executive, Prof Ishaq Olarenwaju Oloyede, while the first Nigerian Professor of Capital Market, Prof. Uchenna Joseph Uwaleke was the keynote speaker.

Previous speakers at the annual conference consisted of Rev. Matthew Hassan Kukah, the Bishop of the Catholic Diocese of Sokoto who delivered the 2019 lecture on “Economy, Security and National Development: The Way Forward.”

In 2021, Mr. Boss Mustapha, as the Secretary to the Government of the Federation and Chairman of the Presidential Task Force on Covid-19, keynoted the conference and spoke on: “Post Covid-19 Pandemic: Recovery and Reconstruction in Nigeria.”

Professor Mahmood Yakubu, Chairman, Independent National Electoral Commission, delivered the keynote at the 2022 edition themed “2023 Elections: Managing the Process for Credible Outcome.”

GOCOP was established to ensure that online publishers uphold the tenets of journalism.

Membership of the Guild is a constellation of editors and senior journalists who, having distinguished themselves in their various positions in the print and electronic media, ventured into online publishing which is both the present and future of journalism globally.

The Guild has over 104 corporate publishers as members.

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