Study: Companies hit by payments data breaches step up security efforts
Payments security is becoming a priority among companies, especially those that have been victimized by a data breach.
More than 70% of organizations that experienced payments data theft intend to increase their payments technology investments in 2018, according to the “2018 Global Payments Insight Survey: Bill Pay Services,” from ACI Worldwide.
According to the study, one in five organizations has experienced payments data theft over the past 12 months, and 36% of organizations across all industries believe they are at a greater risk of data breach than a year ago. Meanwhile, 44% agreed with the view that: “My company would not invest in fraud solutions that add friction to the customer experience.” This sentiment is down from 57% a year ago.
The good news is that more than 80% of organizations that have been impacted by a data breach have introduced a new security framework, especially those related to protecting digital payments. For example, 79% of companies have reduced employee access to customer data.
Another way that companies are fighting back is with real-time payments. In fact, 80% of organizations believe real-time payments will bring cost savings, a jump from 48% the prior year. Meanwhile, 77% believe that real-time will bring improvements in their customer service.
Seventy two percent of respondents expect to move more of their organizations’ payment software into the cloud in the future, an increase of nearly 20% from last year. This reinforces a strong uplift in the popularity of cloud.
Mobile-optimized electronic bills are the biggest current development area, with just under half (49%) of all organizations currently adding new capabilities. Payments from a mobile-optimized website (46%) and text message (42%) are also popular payment methods in development.
Nearly 30% of organizations are developing voice payment features for consumers to trigger payments, with a further 19% are interested in exploring this area in the future, according to the study.
“Security has clearly become a focus for organizations as it relates to billing and payments, and with good reason,” said Steve Kramer, VP, ACI Worldwide.
“The potential reputational and financial costs that could be incurred because of a breach are a major concern,” he added. “Organizations must protect themselves with advanced technologies, such as point-to-point encryption, tokenization and a private cloud.”
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