Worldwide, organisations are warning cybercrime surrounding digital payments is likely to reach new highs in 2022, following record breaches in 2020 and 2021 targeting businesses and individuals alike.
The FinTech Society Research Team (FTR) at University College London points out that, alongside benefits, digital payments also bring a unique set of disadvantages, some of which make them especially vulnerable to criminal exploitation. With cash, there is a physical exchange of value. In digital applications, FTR notes there is ‘no concrete payment proof’ of the value transfer. ‘Criminals can easily obtain credentials, online-banking passwords and control online-banking meetings remotely through the rampant use of trojans.’
Statista—a provider of global market and consumer data—noted worldwide losses from online payment fraud reached $17.5 billion in 2020 and were likely to be around $20 billion in 2021, representing an increase of more than 14 percent.
On a personal level, in an exploration of the rise in fintech fraud, Forbes cited the case of Shayla King, a single mother of four from Florida, U.S. who lost over $740 (€650) when her online bank account was hacked. Chime, a provider of mobile banking services that uses the Visa card network, messaged her to highlight potentially fraudulent activity on the account, but although she confirmed the transactions—from various businesses in India—were illegitimate, the charges went through. She pursued the matter, which was then followed up by a reporter, and the money was eventually refunded more than a month later. King was clear that, given the damage caused to her finances, she would not use online banking again.
