Security and Fraud Prevention in the Era of Real-Time Payments

Security and Fraud Prevention in the Era of Real-Time Payments

The digital world is becoming a vast network of interconnected nodes. It can be difficult to manage security in this increasingly complex environment. This article encapsulates the trends of digital payments security, factors that influence the penetration of digital channels in the market, and the security measures used in digital services. Also, we will look into the transition happening in the introduction of the new technologies, some monitoring principles and key challenges that the banking industry is presently facing, and the security measures that are in focus.

The digital world is becoming a vast network of interconnected nodes. It can be difficult to manage security in this increasingly complex environment. This article encapsulates the trends of digital payments, factors that influence the penetration of digital channels in the market, and the security measures used in digital services. Also, we will look into the transition happening in the introduction of the new technologies; some monitoring principles and key challenges that the banking industry is presently facing; the security measures that are in focus.

According to the Central Bank of Bosnia and Herzegovina, only 32,000 users of internet banking, including individuals and legal entities, were recorded in 2008, but by the end of 2018, the figure rose to 667,551 users, which is approx. 2086% increase.

The year 2018 logged an evolving trend of mobile banking, which was booming in the market. In 2018, the number of electronic banking users increased by more than 600,000, compared to nearly 425,000 in 2017. In line with this, banks have also started to change their strategies and are moving from traditional branches to online digital channels by offering various kinds of services to their customers. Mobile banking services increased by 61% and internet banking decreased by 39%. In 2020, the pandemic highly intensified the usage of mobile banking. Furthermore, not only mobile banking but also other online payments such as e-commerce or direct internet sales are expected to grow extensively in the next decade.

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