The rise of digital-first financial processes has brought convenience and speed to the forefront of payments. But the wheels of progress have moved faster than security measures, making identity theft and related crimes a major issue.
A recent report found that 80% of cybersecurity leaders around the world consider ransomware and similar attacks to be among the most critical threats to public safety. Phishing, account takeover (ATO) attempts and other scams are escalating as alternative payment methods like buy now, pay later (BNPL) and digital currency like bitcoin become more mainstream.
In the latest Alternative Payments Tracker®, PYMNTS takes a deep dive into the growing concerns that have come into play as the digital financial space continues expanding. Data privacy methods are also analyzed as well as the best practices underway and being considered in the cybersecurity space.
Between Black Friday and Cyber Monday 2020 and 2021, BNPL provider Klarna saw a 141% increase in the number of people using its installment payment service. During the same time frame, BNPL fraud went up 66%.
Some 47% of respondents said that concerns about data security are the main reasons they have opted not to change banks to one of the many digital-only FinTech players, according to the Tracker. However, many people aren’t aware of how data is shared, with 73% stating that they believed stored on apps was actually secure. Only 24% of respondents indicated that they were aware that FinTech apps could share their information with third-party firms.
When it comes to verifying their identity using two-factor ID methods, 60% said they would prefer to do that some of the time for the added level of security. But what most people want is freedom of choice, with 73% of respondents stating that they would like to choose their own methods for verifying their identity.
The latest Alternative Payments Tracker®, done in collaboration with Socure, is your go-to monthly resource for updates on trends and changes in alternative payment methods.