Ways to combat digital payment frauds in the times of COVID-19 pandemic


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The COVID-19 pandemic has affected every industry vertical adversely. But the payment industry has witnessed an upsurge even in the crucial times. However, this increase in online payments has also increased digital payment frauds.

As per statista, approximately 24 per cent of correspondents have reported a significant increase in the digital payment frauds in COVID-19. So from this, you can see how digital payments can be at risk. However, many payment businesses have found innovative ways to respond to these frauds seamlessly.

If you are having a payment business, then you need a highly secure digital payment solution to combat the payment frauds. For making a robust payment solution for your business, you can hire software development team or you can outsource your app development to remote developers.

Before you start building a bulk payment solution for your business, you need to look at the latest innovations in the payment industry that can help you to fight with the payment frauds.

Robust payment innovations to combat COVID-19 pandemic

No matter how dangerous the payment frauds are, there are also some payment safety tools to curb them. Here are the tech-savvy payment solutions that can help you prevent payment frauds during the coronavirus pandemic:

Get the PCI-DSS compliance

This is the first step in making a secure digital payment solution. PCI-DSS compliance is a set of regulations created by major players of the payment industry. It requires the payment business to comply with twelve security requirements for making their payments more secure.

If you want to integrate a secure digital payment solution into your business, then it needs to comply with the prevailing PCI norms. However, getting this compliance is not an easy task but you can prefer to tie-up with a payment provider so that you can easily acquire it.

SSL Protocol

For maintaining better security of the digital payments, you need to add an SSL protocol in your website. It allows you to encrypt the sensitive payment information that will transfer over your website.

Also, the padlock icon and the words HTTPS visible next to your website’s address will ensure the viewers of the security of their payments. This would increase your brand’s credibility and reputation.

SSL certification has many benefits, so you need to ensure to have one for your payment business.

Artificial intelligence

Integration of Artificial intelligence and machine learning technology into your business allows you to detect the fraudulent patterns in your transaction history so that you can apply them to check the credibility of your future payments.

AI technologies can help you to prevent payment frauds before its occurrence so that you can take real-time actions to prevent it.

3D Secure Technology

3D secure technology provides an extra layer of security to your digital payment solution. This name derives from the word ‘Three domain secure’. It means that there are three parties involved in this method that are merchant bank, payment provider and the issuing bank.

In this process, fraudulent attempts can be decreased by using the latest payment security measures. Also, the liability on the payment can be shifted from the merchant bank to the issuing bank.


Tokenization is an easier process for securing digital payments as it processes the payments without any hassle. It can easily authenticate the transaction during the purchase period without affecting the transaction security.

In this process, a random token of 16 digits gets generated that replaces the data of the payment mode. Thus, there will be no chances of the payments frauds as the token is useless for the fraudsters. Now, they are unable to do any damage to your payments.

Blockchain technology

Blockchain technology can be of immense help to the payment service providers as it can help them prevent frauds by augmenting real-time data sharing and establishing an agreement among all the parties.

As per statista, the global spending on the blockchain technology solutions in 2020 is estimated to reach 4.1 billion dollars (approx.) and it is expected to increase more in the times of the covid-19 pandemic. Many payment solution providers have started availing secure blockchain solutions to their clients.

Biometric verification

The use of biometric security in digital payment has witnessed an upsurge in the times of the coronavirus pandemic due to the need for avoiding human touch.

Application of different biometric authentication methods such as voice, fingerprint, and eyes biometrics can help you to prevent payment frauds more effectively. Also, biometrics can record the physiological characteristics so that no other than the user can make payments.

Final Words

Cybersecurity and stronger prevention become a major concern when it comes to digital payment frauds. However, the frauds have increased to a large extent due to the increased adoption of digital payment methods in the times of the COVID-19 pandemic.

The safety of digital payments solutions become the responsibility of payment providers. They can use the innovative technologies mentioned in this blog to provide a secure payment experience to their customers.

We hope that this blog has provided you with relevant information on the topic. If you still have any questions regarding it, you can contact us at any time. Thanks for reading.

Nikunj Gundaniya
Nikunj Gundaniya, Product manager Digipay.guru, one of the leading Digital wallet solutions, which provides mobile finance application development services. He is a visionary leader whose flamboyant management style has given profitable results for the company. He believes in the mantra of giving 100% to his work.


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