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The popularity of mobile payments is on the rise. Currently gathering strength to become one of the hottest trends in business and commerce, analysts expect a staggering $700 billion in mobile transactions just in 2017 alone. Accepting mobile payments is a great way to grow your business and tap into this burgeoning trend, but as mobile payments become more ubiquitous, so too does data theft and fraud. To protect your business and its customers from the rising threat of cybercrime, take some time to review your security procedures and implement the following critical tips.
Utilize Two-Factor Authentication
A strong password is the first step toward improved security, but it's hardly adequate protection on its own. Two-factor authentication enhances security by requiring a second "factor" in order to log in—often in the form of either a temporary code sent via text or email or a biometric security measure like a fingerprint or voiceprint. While it does add another step for customers, incorporating two-factor authentication into your payment system is a simple and effective way to keep your customers—and your business—protected.
Store Minimal Data
The best way to keep financial data like credit card information protected is, of course, to not store it at all. This may not be possible, particularly if you offer recurring billing or other services that require stored data, but you can still limit data storage to the bare minimum. In particular, never store credit card security numbers or the track data that is contained within a card's magnetic stripe. Be aware, too, that this information could potentially be stored even without your direct knowledge, which is why it's important to contact your payment processor and verify that they do not record this data.
Encrypt All Stored Data
If you must store credit card information or other sensitive data, be sure to store it in an encrypted format. Credit card fraud often occurs as the result of digitally stored data that has been illegally accessed, and your business could be liable if you haven't taken steps to store such information securely. Whether you store all your data locally or you keep it in the cloud, robust encryption is an absolute necessity. Alternatively, consider working with a payment processing platform that uses tokenization, which doesn't require you to store or transmit cardholder data at all and instead places the responsibility of securing and handling sensitive data on the processor.
Use Approved Equipment and Providers
Even an otherwise bulletproof security plan can be undone by vulnerabilities in your hardware or software, whether it's payment processing software or a mobile point-of-sale system. The same is true if you opt to outsource some of your services to a third party, such as a payment processor or a Software as a Service (SaaS) vendor. To limit your risk and exposure, stick to equipment and service providers that have been certified PCI compliant. This verifies that the hardware or vendor has undergone rigorous testing and meets or exceeds industry security standards, giving you—and your customers—peace of mind when it comes to handling sensitive financial data.
Employ Layered Security
The best cybersecurity plans utilize multiple security features and redundancies designed to complement one another—a method that's often referred to as layered security. The unfortunate reality is that securing mobile payment data is a complex and difficult task for which there is no single solution. Instead, the best approach is to implement a series of overlapping security measures such that your data is still protected even if some of your defenses fail. While this is still no guarantee, it offers the greatest protection against known threats and makes it easier to detect and work to address any new vulnerabilities that appear.
In a world that is increasingly mobile and digital, mobile payments are only expected to grow in the years to come. The threat of data theft, credit card fraud and other cyberattacks will undoubtedly grow as well, creating a real opportunity for businesses that are prepared to defend against these increasingly sophisticated intrusions. By implementing the tips above into your business's security protocols, you'll be better able to protect yourself and your customers against whatever threats may arise.
Beth Kotz is a contributing writer for Credit.com. She specializes in covering financial advice for female entrepreneurs, college students, and recent graduates. She earned a BA in Communications and Media from DePaul University in Chicago, IL, where she continues to live and work.