Payments Blog

The Hidden Costs of the Internet of Things

The Internet of Things will open new and intriguing possibilities and opportunities that almost seem too good to be true. It’s somewhat inconceivable to think about washing machines, or any other connected device, having the capability to order products and services online. There’s already unbridled excitement, on behalf of the entire industry, about the potential of these devices.

While this excitement is justified and understandable, there are some underlying issues with this technology, notably related to cybersecurity. It’s no secret that the Internet of Things is one of the newest, hottest technological trends in the digital payments space and, unfortunately, fraudsters and cybercriminals have noticed too.

For any merchant, it will be incredibly important to balance the potential opportunities, both in terms of sales and public perception, these devices can offer with the risks they carry. The concerning thing about these connected devices is that they will all inevitably be linked on the same network, meaning that if a cybercriminal gains access to one device, they can, theoretically, access every device on that network.

The transformative ability of these devices likely suggests that they will be rushed into the marketplace, because of rampant demand, on behalf of consumers. This, however, can be very damaging because, when this happens, it often means that any cybersecurity flaws have been overlooked.IOT - Word on the Place of Missing Puzzle Piece through Magnifier. Selective Focus.-1

Additionally, while they are excited about the potential of the Internet of Things, and the prospect of ordering food from their refrigerator, consumers will quickly change their minds if they are forced to constantly deal with fraudulent transactions. By the same token, merchants will grow increasingly frustrated if they see an influx of chargebacks.

When a cybercriminal infiltrates these connected devices, and begins using that access to purchase various products and services, unbeknownst to the consumer, that consumer will often feel helpless when they discover the damage.

Cardinal’s rules-based authentication solution, Cardinal Consumer Authentication (CCA), can help merchants protect their consumers, so that they always feel secure. CCA allows merchants to craft rules, from new and enhanced data fields. During the transaction, the issuer can use that data to conduct a comprehensive risk assessment that will determine who is conducting the transaction: a legitimate consumer or a fraudster. With One Connection to Cardinal, we can Drive your Digital Commerce.

Posted by CardinalCommerce

Welcome to the CardinalCommerce blog. Cardinal is a global leader in authenticating digital transactions, with One Connection to drive digital commerce. Our goal for this blog is to provide a platform that will inform and educate our Customers and partners on consumer authentication, payments, mobile commerce, solution design and big data.

Topics: Fraud, Internet of Things, Cybersecurity, CCA

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