Businesses and the Police Express Concern During First Financial ‘Risk Event’ in the Netherlands
(Web-)retailers do not seek sufficient protection against online financial fraud and hacking. This often leads to massive damage. It seems that starters and smaller webshops are particularly naive when it comes to security measures. This came out yesterday during the first financial Risk Event in the Netherlands, held in the Beurs van Berlage in Amsterdam. The event was organised by European Merchant Services (EMS), provider of customer-oriented payment services for (web-)shops in the European market and active in the field of preventing fraud in online payments.
During the meeting, together with such organisations as ABN AMRO Bank, Air Berlin, Bijenkorf, Cap Gemini, Elsevier, Hi Media, Hunkemöller, MasterCard, Prenatal, Ogone and VISA, EMS examined experience and trends within the Netherlands and Europe, but also – in particular – solutions and approaches.
According to Simone Aurighi, EMS’s Credit and Risk Manager, a recent switch can clearly be seen from offline to online financial fraud. “Online payments is precisely where (web-)shops are involved in transactions where they cannot see the client. We have developed a Fraud Report for our (web-)retailers. Our clients have been using this report since the start of this year. This provides them with a clear overview of where and when fraud transactions have taken place and which have been dealt with. In absolute terms, larger retailers have more problems involving fraud than small and medium-sized businesses. EMS wants to show that though use can be made of a technical tool such as the Fraud Report, this is also a matter involving people and trust. It is not always possible to come up with a technical solution. Our EMS Risk Department monitors and scans all our clients’ transactions every day so that we discover fraud cases immediately. If a fraud problem is recognised, it is approached immediately and solved in a safe way. We also advise our clients about how they can accept payments safely and about which types of consumer behaviour they can and should watch out for.”
Criminals manage to find security holes
The statistics recently resented by the Dutch Banking Association showed just how necessary it is to combat financial fraud. These reveal that fraud relating to payment transactions rose last year to 92 million euro. This week it was Visa and Mastercard who sounded the alarm about a gigantic data-leak involving more than 10 million credit cards in the United States of America. Entrepreneurs and the police expressed their concerns during yesterday’s event too. For example, Eva Elbers of the police corps in The Hague, presented police research from the perspective of the criminal. “Webshops in Germany and the USA are particularly ‘hacking-sensitive’, but criminals manage to find the holes in security in the Netherlands too. It is only if all the players along the payment chain cooperate efficiently with one another and – where necessary – share their findings with the police that we will be able to combat online fraud effectively”, according to Elbers.