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5 PayPal Tips to Minimize Fraud and Risk During Summer Holidays – Fintech Switzerland Digital Finance News
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THE World Economic Forum (WEF) Global Risks Report 2023. says cybersecurity ranks
among the top 10 current and future global risks. The annual cost of cybercrime is
is expected to reach $10.5 trillion by 2025
Data from Barracuda, a cybersecurity company, shows that cyberattacks are most effective during the summer, when companies are short-staffed. In January, only about 1 in 80 (1.25%) threat alerts were serious enough to warrant a security alert for a customer, rising to 1 in 5 (20%) between June and September.
Cybersecurity is also a growing concern in the Baltic region, which is home to a growing number of not only foreign-owned companies, but also small and medium-sized businesses, which are increasingly becoming the main targets of cyber attacks.
As the summer holiday season approaches, businesses are urged to remain vigilant against a wave of cybercriminal activity. During this time, many companies are operating with reduced staff, making them prime targets for hackers.
This is even more alarming as many consumers globally are spending more and more online. The recent PayPal e-commerce index reveals that average monthly online shopping spend overall year-on-year increased by 17% in the UK and Spain, 12% in Italy and 11% in Germany. Increased online spending, combined with an increase in fraudulent activity, is forcing businesses of all sizes to adopt data and payment security measures that protect customer data and integrity.
In the digital age, all companies operating in the online space must remain vigilant as a single breach can jeopardize years of trust and hard work. This concerns not only the largest market players, who employ an army of people specializing in security management issues, but also startups and small businesses that often have limited resources in this field. In their case, working with a reliable payment partner can help them protect themselves and their customers from different types of fraud. Ultimately, providing a safe shopping experience not only helps protect the company, but also fosters customer loyalty and trust, ultimately strengthening the company’s reputation and generating more revenue.
says Efi Dahan, vice president, general manager, Central and Eastern Europe and Israel at PayPal.
As the summer holiday season approaches, PayPal has prepared a short guide that can help merchants protect themselves and their customers from scams and other cybersecurity threats.
- Be careful: constant vigilance is key. Cyber threats can occur at any time, especially during busy periods such as summer holidays, Black Friday shopping festival or Christmas. Monitor your systems for unusual activity and be prepared to respond quickly to any suspicious activity. Multiple orders of the same item or multiple orders shipped to a single address may be red flags. Unusual customer behavior, such as attempting to recover your password multiple times or logging in from other locations, should also raise your attention.
- Make sure your software is secure: Update your software regularly to fix vulnerabilities that cybercriminals could exploit. Use security software to protect yourself from malware and ensure your systems comply with the latest security standards.
- Use trusted payment methods: Customers, both domestic and international, naturally lean towards payment methods they recognize and trust, hesitant to use options they are unfamiliar with. This inclination can often influence their purchasing decisions in specific online stores. For foreign buyers, integrating widely recognized payment solutions like PayPal can help. Such platforms instill a sense of security and reliability, as customers can rest easy knowing that if there is a problem, the payment service can help. For merchants, using a trusted and globally experienced payment processor can help protect you from potential fraud.
- Educate your customers: Inform your customers about safe online practices, such as recognizing phishing attempts and using strong, unique passwords. An informed customer base can be an additional line of defense against cyber threats.
- Prevent chargeback fraud: Chargeback occurs when a disputed transaction is resolved in favor of the cardholder (customer). If the cardholder’s financial institution agrees to the dispute, it will cancel the transaction, recovering the money from the merchant and refunding it to the cardholder. It is a common cost of business operations. While many chargebacks are legitimate, others may be the result of fraud. Security solutions can help merchants automatically manage chargebacks, saving time and money. Businesses should implement effective verification methods that can verify whether the billing information entered by a customer matches the billing information on file with the issuer. 5 Tips from PayPal to Minimize Fraud and Risk During the Summer Holidays
This article first appeared on Fintech News Baltic
Featured image credit: Edited by freepik
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