Online payments have quickly become an important part of our everyday lives. By purchasing products and services online, from clothing to entertainment, there is much to gain in terms of convenience and speed.
But with increasing digitisation comes advanced security requirements. How can you feel safe when shopping online? And what are companies doing to ensure your money is secure?
Encryption and SSL Certificates: Basic Security
The first layer of security in online payments is typically made of encryption and SSL certificates. When want to make a payment, check whether the site uses SSL (Secure Socket Layer). SSL certificates encrypt all data transferred between you and the website, meaning personal information and payment details cannot be intercepted by third parties.
SSL certificates work by creating a secure connection between your browser and the server. This is often verified by a small padlock in the address bar and that the web address begins with “https” instead of “http.” While most websites today come with such security features, it doesn’t cost you anything to look for those symbols; and it could cost a lot if you don’t check them.
Two-Factor Authentication (2FA)
Two-factor authentication (2FA) has also become a common security measure in the last few years. With 2FA, the user must verify their identity through two separate steps. This usually means entering your password first and then verifying your identity via a code sent to your mobile or email. By combining something you know (like a password) with something you have (like your mobile), a stronger security wall is built against hackers.
For those using a cryptocurrency exchange or depositing large amounts at crypto casinos with instant deposits and withdrawals, it is particularly important to enable two-factor authentication (2FA) for extra protection. Even though every instant withdrawal online casino is usually licensed (and typically generous in terms of high bonuses and smooth withdrawals), the risk of someone else unauthorised carrying out the withdrawal increases if you don’t use 2FA.
Still, many crypto casinos let players get to play as soon as possible once they submit their crypto wallet data, which eliminates longer registration procedures.
Tokenisation: Making Payment Information Useless to Hackers
Another important security solution is tokenisation. Tokenisation means replacing sensitive information, like your credit card number, with a random string of numbers and letters. This “token” can then be used to complete the transaction without exposing your actual card details.
Tokenisation is particularly effective because it makes payment information useless to potential hackers. If a company is subjected to a data breach and someone manages to obtain the token information, this information is not useful without the original card number. Many larger e-commerce companies use this method to ensure that payment details are handled securely.
Biometric Authentication: A Personal Layer of Security
A newer method that more and more companies are implementing is biometric authentication. This means that a user confirms their identity using, for example, their fingerprint or facial recognition. The technology has become particularly popular with smartphones and provides an extra layer of security since biometric data is unique to each individual and harder to copy or steal.
Biometric authentication is often used in combination with other security measures such as passwords or PIN codes. In this way, multi-step authentication is created, additionally improving security for sensitive online transactions.
Machine Learning and AI: Detecting Suspicious Activities
As digital threats evolve, engineers and cybersecurity specialists build more sophisticated tools to nip them in the bud. Those professionals use machine learning and artificial intelligence (AI) to detect and prevent fraud in online payments. By analysing customer behaviors and identifying unusual patterns in real-time, AI systems can quickly detect potential security threats.
For example, AI systems can notice if an account suddenly makes large withdrawals or purchases from new IP addresses. These activities can trigger a security alert and, if necessary, pause the transaction until the account holder can confirm their identity.
