Trust is both the foundation and the future of payments.
But that doesn’t make maintaining it any easier. There are five big threats to maintaining that trust between payments and financial services providers and the end-customers they serve: Credit risk, payments risk, counterparty risk, fraud and security risk and compliance risk.
While each risk vector demands attention, Boost Payment Solutions Chief Compliance Officer Elly Aiala told PYMNTS during a conversation for the “What’s Next in Payments: The Payments Circle of Trust and Risk” series that two key risks stand out for her: fraud and security risk, and compliance risk.
The evolution of fraud and security risk, as well as compliance risk, is driven by a convergence of technological advancements, the increasing sophistication of cybercriminals and a surge in digital payment adoption.
“Bad actors are leveraging technological advances, such as generative AI [artificial intelligence] to launch increasingly sophisticated attacks … preying on opportunities like product launches or exploiting regulatory changes. It’s a constant challenge,” Aiala said.
She pointed to the pressures of instant gratification in the digital world, where a poor user experience can drive customers to competitors.
And with that efficiency comes the responsibility to identify and mitigate risks creatively.
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