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Understanding the Risks of Insecure Payment Processing

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By Gideon Ayogu

Businesses across the world are losing customers and huge sums due to a rise in payment fraud in the last few years. A recent report highlights an alarming 88% global increase in payment fraud between December 2021 and March 2023.  In an ever-evolving digital world, payment processing is at the heart of every business transaction. However, each transaction carries significant risks that must be effectively managed and mitigated. Consequently, ensuring robust security in payment processing has never been more critical.

With the increasing sophistication of payment fraud, many businesses are becoming targets for hackers and cybercriminals who exploit insecure payment processing systems. These attacks can lead to severe consequences, including financial losses, reputational damage, legal repercussions and a significant loss of customer trust.

This SeerBit blog post highlights the potential risks and consequences of neglecting security in payment systems and emphasises the importance of partnering with a trusted payment solutions provider to effectively mitigate these risks.

Potential Consequences Of Insecure Payment Systems

There are numerous consequences that your business will suffer if you become a victim of fraud due to insecure payment systems. Some of these are discussed below:

  • Financial Losses

The lack of strong security measures in your payment systems can leave your business vulnerable to a wide range of fraud, including unauthorised transactions, identity theft, and credit/debit card fraud. These threats often lead to significant financial losses for businesses. A 2023 report by IBM revealed that the average global cost of a data breach has risen to $4.45 million, covering both direct expenses like fines and legal fees, as well as indirect costs such as customer attrition and lost business opportunities.

In 2023, three Nigerian fintech companies lost more than N5 billion to hacking incidents between Q1 and Q3 of the year, while another lost N800 in just one week, according to media reports. These alarming incidents highlight significant vulnerabilities within the security architecture of payment systems.

The rise in security breaches and fraud cases in recent years, along with businesses being compromised through their connections to insecure platforms, underscores the critical importance of secure payment processing. This highlights the need for businesses to partner with a trusted payment solutions provider.

  • Reputational Damage

Reputational damage from a data breach or fraud often has a longer-lasting impact than the immediate financial losses. Today’s customers are more aware and concerned about the security of their personal and financial information than ever before.

A single breach can severely undermine customer trust, leading to decreased sales and long-term brand damage. Regaining this trust can be extremely challenging, if not impossible, for many businesses. This loss of customers and revenue underscores why secure payment systems are crucial for business survival and growth.

  • Legal Repercussions

Businesses that experience a security breach or fall victim to fraud may face significant legal repercussions, many of which could be avoidable. In cases of payment fraud, affected stakeholders might sue the business, or the business may need to engage in expensive legal proceedings against those responsible.

Additionally, a security breach could indicate non-compliance with industry best practices or current security standards, such as PCI DSS (Payment Card Industry Data Security Standards), potentially resulting in substantial fines and other legal consequences.

How To Secure Your Payment Process And Protect Your Business Against Fraud

The operational disruption that a fraudulent activity or a breach of your security system can cause will lead to a loss of productivity and efficiency, alongside other consequences already discussed in this post. Hence, you should place a premium on securing your payment process and protecting your business against fraud. One of the best ways to achieve this is by relying on a secure payment gateway.

A payment gateway is a technology that captures and transfers payment data from the customer to the acquiring bank. It acts as an intermediary between your business website and the financial institution, ensuring the secure transfer of sensitive payment information. Payment gateways authorise payments for e-transactions, enabling businesses to securely accept credit card payments, digital wallets, and other forms of online payment.

Key Security Features of Payment Gateways

Below are some of the key security features a payment gateway must incorporate to ensure secure transactions:

  1. Encryption and SSL: Encryption converts data into a secure code to prevent unauthorised access. Secure Socket Layer (SSL) certificates ensure that data transferred between the customer and the merchant is encrypted and secure.
  2. Tokenization: Tokenization replaces sensitive payment information with a unique identifier or token. This token is used during transactions, keeping the actual payment data secure and reducing the risk of data breaches.
  3. PCI DSS Compliance: The Payment Card Industry Data Security Standard (PCI DSS) sets security standards for organisations handling credit card information. Compliance with PCI DSS ensures that payment gateways adhere to stringent security measures to protect cardholder data.
  4. Fraud Detection and Prevention Tools: Advanced tools such as CVV verification, address verification, and AI-based fraud detection systems help identify and prevent fraudulent transactions, safeguarding both businesses and customers.
  5. Trustworthiness: Ensure that the payment gateway has a proven track record and industry certifications to back up its claims of security and reliability.

When selecting a payment gateway for your business, it is crucial to prioritise these key features before trusting them to process your transactions.  A secure payment gateway ensures that your payment systems and processing are secure and insulates your business from fraud and hacking attacks.

Payment gateways lacking these essential features should not be considered for your business.

Benefits of Secure Payment Gateways for Businesses

A secure payment gateway such as SeerBit offers numerous benefits for businesses:

  1. Enhanced Customer Trust and Satisfaction: A secure payment gateway builds customer confidence, encouraging repeat purchases and fostering loyalty.
  2. Reduced Fraud and Chargebacks: By minimising fraud-related losses and reducing chargebacks, businesses can protect their revenue and maintain financial stability.
  3. Regulatory Compliance: Secure payment gateways ensure compliance with legal and regulatory standards, helping businesses avoid penalties and legal issues.
  4. Competitive Advantage: Prioritising security can serve as a unique selling point, setting businesses apart from competitors and attracting security-conscious customers.
Conclusion

In today’s digital economy, the impact of a security breach or payment fraud can be devastating for businesses. As the digital landscape evolves, so do the risks associated with it, making it crucial for businesses to choose secure payment systems proactively. Secure payment gateways are vital for maintaining both the success and credibility of any business in the modern digital age. By prioritising robust security measures, businesses can safeguard themselves and their customers, build trust, and ensure seamless transactions.

At SeerBit, we are committed to providing top-tier security to protect your business and customer data, while also delivering a smooth and efficient payment experience.

 Discover how we can enhance your payment processes today!

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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What does the future of marketing African tourism to Europe look like?

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Africa’s tourism industry has always been a major contributor to the continent’s economic growth, thanks to the unrivalled cultural experiences, stunning landscapes and one-of-a-kind wildlife safaris. Statista estimates that it contributed 5.9% to Africa’s GDP in 2022, up from 4.4% the previous year.

As the world goes back into normalcy post-pandemic, Africa’s tourism numbers will only continue to grow, with Europe firmly at the centre of this growth. But what does the future of marketing to European tourists look like, and how can locations and brands ensure they are heard above all the noise?

Evolving European travel preferences

European travellers’ preferences are gradually skewing towards authentic, sustainable, and immersive experiences. Booking.com’s 2023 Sustainable Travel Report found that 76% of the respondents are looking towards more sustainable travel options. The stereotypical vacation is no longer enough, and they are seeking adventures infused with local cultures, communities and nature. This means that African destinations are ideally positioned to appeal to this generation of travellers.

Additionally, the pandemic has contributed to a shift in travel behaviour and intimate experiences prioritising health and wellness have become more appealing. European travellers are also looking to digital platforms for inspiration, and influencers, social media and digital content play a major role when making travel decisions.

Storytelling: The key to marketing African tourism

Storytelling will be crucial when marketing African tourism to Europe. African destinations’ stories are fascinating – stories of heritage, culture and idyllic landscapes. These narratives draw in the European traveller, as they offer a deeper connection to the destinations. Brands that can tap into this will stand out among the rest.

“We understand the power of storytelling, which is why our approach is to craft compelling and authentic stories that resonate with European audiences. Content marketing, strategic communication and social media campaigns are just some of the ways we bring stories to life, ensuring they land every time with the target audience,” says Emma Cox, Executive Creative Director at Irvine Partners.

Digital campaigns and sustainability messaging

Marketing campaigns will not only need to be digital focused, as a result of the massive influence of social media, the content will also need to be engaging enough to capture traveller’s attention. This will include everything from outstanding visuals and videos, blog posts, influencer collaborations and even virtual tours.

Innovation, such as Virtual Reality and Augmented Reality will also play a key role when it comes to digital campaigns. These will continue to transform travellers’ experiences, even before they arrive at their destination.

European tourists place great value on sustainable tourism. One survey found that 86% of Britons stated that sustainability was important to them. African destinations will have to showcase their sustainability efforts, conservation and responsible tourism. Increasingly, travellers want to know how their visits impact local communities and the environment.

Overcoming challenges when marketing African tourism

Africa’s tourism potential is unmatched, but challenges still exist, which can be overcome by effective marketing and PR campaigns. Outdated views on the continent’s accessibility, infrastructure and safety persist, especially for first time visitors. Combating these views requires a public relations strategy, highlighting the modern, vibrant and safe destinations that the African continent has to offer.

Language and cultural barriers can also result in instances where the message gets lost in translation. Europe is not homogenous and each country has its own tastes and preferences. Successful marketing strategies require an understanding of these differences and in turn, tailoring messages accordingly for each market.

“In our decade long experience, we have found the most success when we tailor messaging for each market. This is why it was imperative that we have offices in the UK and Germany, to ensure that any campaigns we work on have local nuance,” concludes Cox.

Bright future

The future of marketing African tourism to Europeans is very promising. With the right strategies, centering storytelling, digital engagement, technology and sustainability, African destinations can flourish and take their rightful place on the global tourism landscape.


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African Voices Changemakers Celebrates Afrobeat Sensation Rema

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Afrobeat sensation and Nigerian music star, Rema, will this week share his inspiring story on CNN International’s African Voices Changemakers, sponsored by Globacom.

Born Divine Ikubor, the 24-year-old Edo-born singer-songwriter, discovered his passion for music in church and school. His big break came after posting a viral freestyle on Instagram, catching D’Prince’s attention. This led to a record deal with Jonzing World, a subsidiary of Mavin Records, owned by Don Jazzy.

Rema’s global ascension gained momentum in 2022 with the release of his hit single “Calm Down”. The song’s massive success led to a collaboration with American pop sensation Selena Gomez, propelling it to greater heights.  Notably ‘Calm Down” reached number three on the prestigious Billboard Hot 100 chart, number one on Billboard Afrobeats Songs chart, where it held the top spot for a record- breaking 58 weeks.

His star status was crowned on November 7, 2022, when he received an award for achieving 1 billion streams worldwide during his London concert, in addition to performing at the Ballon d’Or ceremony held at the Theatre du Châtelet in Paris, France on October 30, 2023.

The interesting episode of African Voices awaits viewers on CNN on Saturday at 8.30 a.m., with repeats at noon the same day.  More repeats come up on Sunday at 4.30 a.m., 7.00 p.m. and on Monday at 4.00 a.m.

 


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Together, Agents and Humans Will Drive Customer Success

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By Linda Saunders, Director Solutions Engineering, Africa Salesforce

AI is advancing rapidly, capturing the attention of CEOs, CTOs, and CIOs with its proven ability to boost productivity, enhance employee performance, and improve customer relationships.

We are entering the third wave of AI where autonomous AI agents will go beyond simply generating and analysing content, as chatbots and copilots did in the first and second waves and will be able to reason and autonomously take action for human colleagues. Indeed, they’ll work 24/7 to tackle individual, low-value, time-consuming tasks or collaborate with other agents to get larger, more complex jobs and projects done.

In sales, for example, they’ll engage with prospects, answer questions, manage objections, and schedule meetings based on CRM and external data, allowing sellers to focus on building deeper customer relationships. With dynamic, conversational self-service, they can be configured to answer customer questions using companies’ existing knowledge base so they can automatically resolve account access. They can also triage registration and payment issues, directing customers to the appropriate resources.

Put simply, the future of AI is agents, and it’s here. Companies need to get ready to implement fast as these autonomous agents will become central to organizations’ customer engagement and experience strategies.

Working together, these customisable agents can autonomously take action on tasks and free up workers to focus on the jobs only they can do.

At Dreamforce, Salesforce unveiled Agentforce – a groundbreaking suite of customizable, autonomous agents and tools, makes it easy for customers to build their own ‘agent force’ — a revolutionary step forward in enterprise AI that will boost productivity, efficiency, and customer satisfaction across service, sales, marketing, commerce, and more. Agentforce is how humans with AI drive customer success together and it’s been designed so that any organisation can build, customise, and deploy their own agents quickly and easily, with low-code tools.]

Complementing skills, and ensuring accountability

The leap from generative to agentic AI will transform how humans work.

Despite business eagerness to experiment with and deploy AI, many still worry about how to do so safely, how to keep data under their control, and make sure they can trust the AI’s output.

There is considerable concern about AI ‌displacing workers or becoming too powerful and working at odds with humans.

Agents require guardrails, and they have to be monitored to make sure that they’re doing what they’re supposed to.

Success requires not just finding the AI models or building AI actions that best suit a company’s needs but having the infrastructure and data security to do so responsibly.

Audit trails are necessary to hold autonomous AI agents accountable, just as employers might establish key performance indicators (KPIs) to keep human workers marching toward their expected goals.

It’s important to think about the role of agents at work as a partnership between people and AI. Complementing skills and intelligence will bring better business outcomes.

While agents can orchestrate complex actions on behalf of the user, they require those skills to be configured and need a degree of hand-holding to perform at their best.

Businesses need to take their employees on the AI journey. They will require training to work with autonomous AI agents because they need context and onboarding much like new employees.

Setting direction, clear goals, and giving feedback ultimately helps AI train itself better.

The future of work is a hybrid workforce

Together, agents with humans will drive customer success. This is what AI is meant to be.

Every company has more jobs to be done than the resources available to do them. As a result, many jobs go unaddressed or uncompleted.

An estimated 41% of employee time is spent on repetitive, low-impact work, and 65% of desk workers believe generative AI will allow them to be more strategic, according to the Salesforce Trends in AI Report.

However, it’s essential for AI agents to understand and execute their expansive capabilities. It’s equally, if not more, important for them to recognize their limitations and understand when human intervention is necessary.

The future of work is a hybrid workforce composed of humans with agents, enabling companies to compete in an ever-changing world. With AI, humans can focus on what’s really important: human relationships.


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