Risk Management

The payment market is currently flooded with payment options. Cash transactions are quickly being replaced by cards and contactless systems, mobile wallets and QR-based payment systems.

The future of the payment card industry is likely to be shaped by even faster developing technologies such as the rise of blockchain and artificial intelligence. These developments bring even more risk to the payment table, and will also impact management, marketing and financial planning. Risk management professionals will need to focus on strategies to plan for both short and long-term changes in the industry.

Payment risk refers to the potential of losses due to a contract default or other payment event such as fraud, security breaches or chargebacks. Companies regularly handling a high volume of online payments are subject to such risks.

The implementation of payment risk management strategies must be carefully balanced to avoid damaging a company’s reputation. For example, it’s important to correctly assess whether a transaction is actually legitimate, or an act of fraud. An incorrect evaluation either way can cause inconvenience, financial loss and major upheaval in the payment process.

With our extensive experience in this field, we can help you implement robust risk management procedures which involve proactively assessing threats and planning mitigation measures to minimize risk impact on your business.

Fraud Control

Advancements in generative artificial intelligence (AI) and automation are changing the scope of fraud. The accuracy and believability of AI-enhanced social engineering scams, paired with the rapid-fire speed of automation, is leading to a jump in downstream fraud. Traditionally, firms have used fraud detection and prevention to curb company financial losses and maintain positive customer relationships. However, in some jurisdictions, legislation requires fraud programs for firms providing certain services, such as insurance providers in multiple US states.

Fraud detection is essential for companies to safeguard their customers’ transactions and accounts by detecting fraud before or as it happens. The FBI reports that in 2022, elder fraud victims in the US lost an average of $35,101 each, resulting in a total loss of over $3 billion. In 2021, global fraud losses exceeded $55 billion, aided by technology that allows illegal funds to cross international borders. As global awareness of fraud’s growing varieties and complexity of typologies, firms should expect the introduction of more regulation and enforcement that will impact their compliance requirements.

Our consulting services include all elements of detecting and preventing payment fraud.

Payment Networks

Most payment networks are made up of many participating entities, such as credit card companies, banks, credit unions, and other financial institutions. These groups of entities are connected by an electronic network through which funds are transferred under the guidance of a shared set of regulations and guidelines.

Fraud attacks are a huge problem, with the majority of payment fraud happening online. 76% of all payments are made online because it’s easier than paying in-store with a stolen credit card. Payment gateway risks can pose a significant threat to businesses’ financial health, and it is crucial to take measures to mitigate these risks. Using multiple payment gateways, understanding the audience’s preferences, complying with regulations, and monitoring payment transactions are some steps businesses can take to reduce the risks of payment failure. For example, payment account deactivation can be a disaster for businesses, resulting in loss of funds and business operations.

Therefore, it is essential to be vigilant and look out for red flags such as excessive chargebacks, policy violations, and unusual activity to identify potential risks. With our extensive experience in dealing with payment networks, we can help you adopt measures to prevent chargebacks and complying with policies, businesses can protect their payment accounts and thereby ensure smooth financial transactions. 

PCI Compliance

Complying with PCI DSS offers several advantages for businesses in terms of protecting data and enhancing their reputation as security-conscious organizations. However, this can be a daunting and complex task.

PCI DSS’ requirements cover a range of security controls that are often difficult for businesses to understand and implement, particularly for smaller companies with limited resources. It can be also expensive to maintain and comply with PCI DSS security systems, processes, competencies and personnel, especially for smaller businesses.

Compliance with PCI DSS requires ongoing monitoring, testing and updating of security measures to ensure continued adherence. This ongoing process requires time and resources. Moreover, the payment card industry and cybersecurity landscape are constantly adapting to emerging threats and changing compliance requirements. Complying with these changing standards can be demanding for businesses.

PCI DSS compliance demonstrates a commitment to industry best practices that improve a business’s standing with partners, stakeholders and regulators. We can help you navigate compliance with the standards established by the PCI and thereby create trust and confidence in your company.