The Security Behind Online Transactions

Online transactions have become second nature for most internet users. We do grocery shopping, subscribe to services, and even gamble online using these payment platforms. As our economy continues to become increasingly online, the security of these online transactions is more important than ever.

The shift to digital transactions in many industries has not only simplified operations for most companies but also introduced new vulnerabilities and opportunities for cybercriminals. The digital finance sector has championed many technological advances to combat these risks. Continue reading to learn more about the various tools that companies employ to keep your money safe online.

Two-Factor Authentication

Commonly referred to as 2FA, two-factor authentication is a more secure method for verifying your identity online. 2FA is more secure than SFA (single-factor authentication) but less secure than MFA (multi-factor identification, which requires three or more forms of ID). There are five verification methods that can be used with 2FA, depending on the site. 

Knowledge Factor

A knowledge factor is one of the simplest authentication methods; it refers to something the user knows, like a PIN or password.

Location Factor

Location can be used as a verification method for some sites. The platform will use your location, usually obtained through your IP address or other GPS data, to determine your location. If you’re within the approved area, then you’ll be able to access your account.

Biometric Factor

When you use something like a fingerprint or facial recognition, you’re using a biometric factor. In other words, these verify your identity by using something physically unique to you.

Possession Factor

Possession factors relate to something you have on you, such as a keycard or mobile device. You can use these physical items to authenticate in combination with another factor.

Time Factor

If the site you’re using limits your access to specific time periods, the site authenticates with a time factor. Anytime you try to log in outside that time period, you will be rejected, though some sites will still let you into your account using other factors.

PCI-DSS Compliance

In 2004, the four largest credit card providers created the Payment Card Industry Security Standards Council. This group sets the rules for accessing and transmitting personal data for all online transactions. These regulations, called Payment Card Industry Data Security Standards (PCI-DSS), have multiple components that payment processors must follow.

Data Encryption

All consumer information should be encrypted before it is transferred. If encrypted data is intercepted, the hacker cannot read or use the details of the user’s info, meaning their card details are safe.

Restrict Employee Access

Even within the payment processing companies, your data can be at risk. To be PCI-DSS compliant, processors must restrict access to users’ confidential information to only authorised personnel. 

Network Security

Network security is one of the most important factors when it comes to securing online transactions. Removing default credentials, using robust firewalls, and encouraging customers to change their passwords regularly are just a few ways to ensure this security.

Maintain System Updates

Ensuring the security of payment systems requires processors to keep those systems updated with the latest measures. Providing the latest security updates will keep hackers from being able to take advantage of old flaws or loopholes in the system. Network security involves many moving pieces.

IDPS

Intrusion detection and prevention systems (IDPS) use a combination of methods to monitor the network for suspicious activity. When potential threats can be identified and mitigated quickly, the chances of a data breach decrease.

Access Controls

Limiting access to only the essential personnel is essential for PCI-DSS compliance, but it’s important beyond that as well. When only authorised users can access the details of a payment system, threat levels are lessened.

Segmentation

Breaking down a network into individual segments can limit the damage of a security breach. If different types of sensitive data are stored in multiple locations, processors can restrict access and make it more difficult for hackers to collect the details needed to steal someone’s identity.

Monitoring and Response

All of these measures help prevent security attacks, but when something does happen, it’s crucial to have a response plan in place. When online transactions are monitored, the security team can more quickly identify and respond to any potential threats to the system.

Data Encryption

Data encryption is necessary even outside of PCI-DSS compliance. It prevents unauthorised parties from accessing financial information for nefarious purposes. Within encryption, there are two separate modes. Encryption is symmetric when the same key is used for locking and unlocking the data, while asymmetric encryption uses two different keys for the same process. Because of this dual layer, asymmetric encryption is generally considered more secure.

Tokenisation

Similar to encryption, tokenisation is another way to secure payment information by translating important data. With tokenisation, the data is replaced with individual “tokens” that mean nothing without the ability to translate them back into the original data.

Choose the Right Payment Processor

Any reputable payment processor uses secure payment gateways, such as those that allow you to maximise security with Paysafecard deposits. A genuinely secure payment gateway uses all the methods we’ve discussed: tokenisation, authentication, encryption, PCI-DSS compliance, and reliable and up-to-date systems.

Conclusion

All of these features may sound complicated, but if you are diligent and monitor your hard-earned money when conducting online transactions, you can be rest assured reputable payment processors are doing the work they need to do to ensure security. Taking steps like enabling 2FA where possible, protecting your passwords, and keeping an eye on your bank statement can also help. If you’re unsure about the security measures a website uses, contact their customer service before putting in any sensitive information.