The Perils of Digital Payments - Part 2

Cyber legal security is a major awareness being witnessed in firms dealing with credit cards in Europe and Middle East. Singh points out, “Our risk assessment combines the latest intelligence from our SpiderLabs team with our Global Threat Database, and feeds that information into our assessment services. That way, risk assessment for a company is not only customized to their environment, but helps stay one step ahead of the marketplace”.

Individuals using credit cards need to be aware of those faceless bandits and every credit firm needs to ensure that such bandits do not loot the people they are servicing.

“Audits are extremely important for digital payment companies that deal with crucial financial data like credit ordebit card numbers or bank account details.. While payment companies do follow stringent data security protocols, it is advisable to conduct timely audits so as to mitigate risks and reduce frauds,” said Upasana Taku, Co-founder and Director, MobiKwik.

The rapidly advancing technology has the potential to further boost globalisation, but the real challenge before the world is to find a balance and solution between security and privacy.

“Payment companies are bound to follow certain audit protocols as per guidelines laid by RBI and Visa and Mastercard card schemes. I believe it is a good practice as it ensures timely detection of frauds if any, and safeguards the security of all customer data,” said Taku.

Snowden episode had demonstrated that users and nations need to be worried about the security of their data. It has, no doubt, led to interruptions in seamless flow of data and information, but the need for finding a fine balance between the security of data as well as seamless flow of data can be achieved by use of various audits.

The Government, industry, academia and the civil society need to work together to ensure a perfect balance between security and smooth flow of data.

“Credit companies need to monitor as per the rules of RBI. They are doing the audits, but more needs to be done,” says Gulshan Rai, the National Cyber Security Coordinator, Prime Minister’s Office.

Singh says, third-party vendors can help businesses scale more quickly, reduce cost and staffing burdens and realise other hidden efficiencies. Sharing sensitive data with outside vendors also brings with it, substantial risks. “But it is a big responsibility and big business opportunity and needs to be taken up and delivered to the credit card firms, which in turn will give secure and safe credit card usage to an individual,” said Singh.

Auditing of firms offering credit cards services will also help growth of digital money and digital economy.