Chief Design Thinking Officer at BNP Paribas French Retail Banking (FRB), Stéphane Biso shares...
Widespread misperceptions die hard. Not only do many debit and credit cardholders believe that online payments are risky, they also think fraud is becoming more frequent. And yet, the numbers show that nothing could be farther from the truth.
Decreasing rates of online fraud
According to a recent report published by the French Observatory for Payment Card Security (l’Observatoire de la sécurité des cartes de paiement), the rate of fraud for remote card payments (by phone, postal mail and online) decreased in 2014, for the third consecutive year.
Though the rate of fraud is still higher than for in-store purchases, new security systems are proving to be highly effective, especially “3D Secure” systems. In order to approve an online payment, these solutions require users to enter an authentication code transmitted by the card’s issuing bank. For every purchase, the cardholder may receive a code sent by text message – making it impossible to complete a payment with a stolen card.
60% of online retailers use 3D Secure solutions as of April 2015, compared with 43% in 2013.
According to the same report, French online shoppers are increasingly sensitive to security issues. Approximately 85% of French online shoppers say that security plays a central role in their choice of e-commerce websites. One positive outcome: by privileging the most secure sites rather than opting for the lowest price, shoppers encourage online retailers to boost their security measures. Security will improve even more rapidly if every shopper adopts the same mindset.
The biggest risk: phishing
Most fraud is now tied to “phishing", or the attempt to steal personal information, especially bank information, by e-mail. Lots of Internet users fall for this trap simply through a lack of vigilance!
To avoid this pitfall, Internet users should follow two firm rules, among others:
1. Never reply to an e-mail asking you to communicate your bank information: this is most certainly a scam.
2. Never click links (or open attachments) in e-mails appearing to come from a retailer you have never shopped with.
The Group’s solutions
BNP Paribas develops systems enabling its customers to pay for online purchases easily and securely.
In Belgium, BNP Paribas Fortis has developed Sixdots in partnership with Belgacom. This service provides customers with a simple and secure online payment method.
In partnership with other French banks, the Group has also launched Paylib, another fully secure payment system available via smartphone, tablet and PC.
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