An information security expert, President and Chairman Board of Trustees of the Information Security Society of Africa, Nigeria (ISSAN), Dr. David Isiavwe, has predicted that the ePayments space would revolutionize banking and take over the financial services space, thereby causing the extinction of the traditional banks in the next 20 years.
Isiavwe’s prediction is hinged on the exponential growth of ePayment channels, where the annual transaction value of online and mobile payments is set to hit $4.7 trillion by 2019.
He made this prediction during the just concluded 7th Annual Payment Systems & Fraud Conference 2016, organized by the E-Payment providers Association of Nigeria in Lagos in a paper titled ‘Addressing ePayment Fraud: Exploiting the Technology’, adding that “The traditional banks as we know them today may not be alive in the next 20 years as the ePayments space would revolutionize banking and take over the financial services space.”
He hinted that as the ePayment continues to grow, so also the activities of eFraud would continue to explode, as the criminals will follow the money in an integrated manner onto the ePayments space.
He cited that the global card fraud reached US$21. 84 billion in 2015, with an expected peak to reach US$31.26 billion before 2018.
“It is estimated that globally, nearly 1 in 3 consumers are victimized by card fraud, with almost 1 in 5 consumers experiencing fraud multiple times in the past five years. These fraud events erode consumer trust in their banks and generate losses for multiple parties, including banks and merchants,” he said.
According to him, the eFruadster are not doing anything extraordinary, but just a constant rehash of old fraud schemes with a little variation in their modus operandi to carry out their attacks on unsuspecting users.
Commenting on how technology can be exploited to combat eFraud activities, he recommended that resilient systems have to be deployed for ePayment transaction processing to achieve 99.99 percent uptime.
He explained that the resilient systems include call center technology as well as intelligent fraud detection and prevention systems to accurately analyze customer behaviour and spending patterns with minimal false positives.