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How To Prevent E-payment Fraud?

Sep. 23, 2020

Recently, e-payment fraud happened at the digital payment software of NTT DOCOMO, one of Japan's three telecom companies, and SBI Securities, Japan's largest Internet securities company. This is another security hole of e-payment service after it took place in convenience store giant 7-11 last year, pushing e-payment security to a climax and trigger heated discussions among the public.


It is likely that criminals stole the victim's account and password through phishing software, and then use the authentication vulnerability of the digital payment system to get benefit, police analyzed.

And it actually reflects some problems in Japanese financial institutions include loose safety systems, inadequate regulation, and weak safety technology, and so on.


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Take the NTT DOCOMO account serves as an example, user can create an account simply by filling out his email address. They put convenience first rather than safety, which greatly increases account theft risk with its simple and single identification method. On the other hand, banks unable timely to deal with a large number of stolen funds due to the large economic burden on strengthen the security system and the information postpone the release.


Then, how should we do to prevent such e-payment fraud? Experts on e-settlement and consumption issues provide us the following tips.


How to Prevent E-payment Fraud?


1. Strengthen the authentication system of the mobile phone numbers.

2. Reinforce personal authentication as far as possible by sending and receiving real-time authentication codes.

3. Do not easily change the phone number used for registration to respond to prevent criminals from stealing funds through forged phone numbers.


How to Treat Illegal Theft Issue when E-payment Fraud occurs?


First, users should clearly know that they are not the person who should be blamed or took responsibility. The biggest mistake is poor safety in the digital payment service system. Due to a reduction in some local banks' income, it is difficult to manage the system and personnel and enhance the security of the bank system, which makes criminals access to credit card fraud. Thus, users should choose large banks and institutions that are trustworthy to open accounts and better protect their property security.  


What Should User Do If He Does Not Use E-payment Services?


User should check their account information frequently which can freely watch online on the website of financial institutions. Once the abnormal deduction is found, it is necessary to contact the financial authorities for confirmation as soon as possible. If any unreasonable deduction occurs, the loss will be covered by the financial institution.


In fact, no matter aiming to accelerate the process of a cashless society or to compete for a market share of the contactless payment, user authentication, and payment security should be given to the first place. Secondly, relevant stakeholders (platform, bank, etc) should assume corresponding responsibilities, timely release information to remind the general public, and take effective measures to ensure or recovery the safety of users' funds.


Otherwise, it will only aggravate people's fear and resistance to e-payment, which is not conducive to the follow-up promotion.

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The user-oriented provider of smart hardware and solution, Telpo can assist financial institutions to achieve double or multiple identifications with its face recognition, fingerprint recognition, iris recognition, and other biometric terminals. Biometric technology can better protect users' personal information in a more secure and unique way and prevent illegal criminals from using a single authentication method to illegally steal users' accounts and cause financial losses.


It is not an easy thing to promote e-payment steady and safe development, the company of terminal, software, and platform should cooperate together to bear social responsibility and create a safe and convenient payment environment for citizens.


Tag: e-payment, e-payment service, e-payment fraud, digital payment system, NTT DoCoMo, SBI Securities, Japan, financial institution, biometric, identification, authentication

Brief Introduction: Telpo is a professional smart payment partner who focuses on the ODM service 20 years. It mainly provides the EFT-POS, cash registers, biometric devices, facial recognition machines, self-service kiosks, and bus validators. Telpo has served for more than 1000 customers abroad, including government, banks, Telecom operators, police stations, Retail shops, and offices. Telpo adheres to R&D and innovation, aiming to provide more intelligent hardware for global partners.

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