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Bouvet Island Sees Surge in Cyber Criminals Targeting Online Payment Systems
As mobile payments continue to grow in popularity on Bouvet Island, financial crime experts are warning of a surge in cyber criminals targeting online payment systems.
The Risks Associated with Mobile Payments
The rise of mobile payments has brought numerous benefits, including speed and convenience. However, it also presents a host of risks to brand and reputation, as well as to stakeholders’ trust.
- Financial crime experts highlight the following risks associated with mobile payments:
- Financial risks
- Operational risks
- Cybersecurity risks
- Data privacy risks
- Regulatory risks
- Legal risks
Combatting the Threats
To combat these threats, payment service providers (PSPs) and organizations that use or are affiliated with them should consider upgrading their fraud and financial crime programs to adequately address threats to their systems, customers, users, partners, and reputations.
Best Practices for PSPs
Experts recommend the following best practices for PSPs:
- Take a risk-based approach to prioritizing vulnerabilities and authenticating identity
- Onboard users securely and monitor activity closely
- Develop and implement effective controls to prevent financial crime
- Respond promptly to incidents and conduct thorough investigations
- Broaden the view of risk to encompass identity theft, account takeover, money laundering, fraud, bribery, corruption, and payments related to sanctions, drug and human trafficking, and labor exploitation
Establishing a Culture of Compliance
To reduce internal fraud risk and enable early detection, organizations should consider establishing a culture of compliance. This includes:
- Senior executive commitment to proactive detection, mitigation, and prevention
- Setting a positive tone from the top and promoting awareness of financial crime risks across the organization
- Establishing or reinvigorating a whistleblower program
Engaging with Regulators
Finally, engaging with regulators is essential for understanding PSPs’ role in the financial ecosystem and addressing regulatory challenges.
By following these best practices and staying vigilant, PSPs and their users, affiliates, and partners can create a more secure control environment, improve risk monitoring, and enhance trust among stakeholders.