How to Prepare Against Digital Payment Fraud - IT News Africa | Business Technology, Telecoms and Startup News

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Approximately 45% of SMEs fear that they might become victims of fraud when using digital cross-border payments, as reported by Mastercard.

Approximately 45% of SMEs fear that they might become victims of fraud when using digital cross-border payments, as

This article shines a light on any security risks with cross-border payments and ways to combat fraud, as well as how innovative fintech solutions can support businesses and keep them safe and secure as they grow. One of the key challenges in cross-border payments is the lack of standardization across different jurisdictions. Payment systems vary significantly in terms of their regulatory frameworks, messaging formats, and processing protocols.

The infamous SWIFT attacks in 2016 highlighted the potential for sophisticated cybercriminals to exploit vulnerabilities in cross-border payment systems, leading to substantial financial losses.To address the issue of standardization, it is essential for financial institutions to adopt robust international payment standards, such as ISO 20022. This messaging standard streamlines payment communication and promotes interoperability among different systems, overall reducing the risk of fraud.

Additionally, an API that’s part of a cross-border payments platform can streamline and automate processes, reducing manual intervention and human error. By integrating with various systems, an API can provide seamless data exchange, improving the speed, efficiency, and traceability of transactions. Ola Oyetayo, Chief Executive Officer at Verto says that businesses should partner with a secure global payments provider to support them with the complexities of sending and receiving funds, whether it be from a local partner, or a customer on the other side of the world.

 

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