Smart Bank 2020: Is online card payment secure?

The sixth year in a row Smart Bank brings a nationwide competition for the best banking applications in Slovakia. Based on the votes cast, we will evaluate the best banking applications according to their functions and features that they offer to their clients. Voting takes place from 19 January to 28 February 2021.

As part of the survey, we are preparing a series of articles in which we deal with the most important topics. This week includes security when shopping online. So is online shopping really safe? Are there any pitfalls you should know about?

The popularity of online shopping is growing extremely

Online shopping is becoming more and more popular. People shop online more often, and the ongoing pandemic has significantly helped this trend. Internet shopping does not limit us to opening hours and, best of all, we don’t have to go anywhere.

There are various pitfalls waiting for us when shopping online. The attackers are becoming more sophisticated, but neither side is sleeping. In principle, shopping online is a safe process if the buyer follows several key principles. Because he is currently the most vulnerable and easiest part of the whole process.

The main principles of safe shopping on the Internet

• Only shop with trusted merchants.
• Focus your attention on securing the site where you are shopping. If the page is secure, it is marked with a lock icon or https: // cipher.
• If you are buying from a merchant for the first time, focus on the transparency of the company’s data or reviews on the Internet.
• Beware of suspiciously low prices, these are the most common examples of fraudulent e-shops.
• The basic rule – do not use easy-to-guess passwords.
• Do not connect to your internet banking via public Wi-Fi networks, sensitive data may be leaked.
• We recommend that you use antivirus software that is updated to the latest version.
• Always keep your devices up to date – smartphone, computer, tablet

Payout, general partner of the Smart Bank 2020 survey

The merchant’s lack of online payment may result in the purchase not being completed. Online payments make shopping more efficient and faster. Thanks to them, the number of completed orders increases. If the e-shop does not offer the option of online payment, more than 10% of customers will not complete the purchase process.

Compared to the transfer of money via internet banking, payment gateways are an advantage mainly for the speed and simplicity of payment. The customer pays for the goods within a few seconds. At the same time, the owner of the e-shop can have the given payment on the Payout payment account. With this type of payment, the e-shop can ship the goods immediately. Payment by card is secure and especially fast.

In 2020, the attackers abused the COVID topic in particular

“2020 was a year when we saw a sharp increase in the number of banking malware families. Detections of malicious codes increased especially in the second half of the year, while their number jumped up to three times compared to the first half of the year.

Banking malware operators in 2020 often abused the COVID theme, especially to entice users to install their application. The creators of such attacks most often created sites that mimic state websites providing information about the pandemic and coronavirus. Users then downloaded malicious code instead of a helpful application or content. ”

Lukáš Štefanko, ESET Malicious Code Researcher

How do Slovak banks simplify online payments for clients?

The goal of all Slovak banks is to make payments on the Internet as secure and convenient as possible. Their answers agree and they all offer a protocol 3DSecureso clients verify payments through. Customers mBank they continue to confirm the payments as usual. UniCredit a Postal bank they say that confirming payment is easier and faster.

Signing payments in Slovenské sporiteľňa works via mToken. Clients are used to this type of payment confirmation because they have used it in the George app before. VÚB bank is added to the list of banks where it is very simple. Verification will take place in the application by PIN code or biometrics. IN 365.bank payment signing is solved either through an application or a combination of SMS code and ePIN.

Is card payment safe and what types of card payment security do online banks offer?

Thanks to the 3DSecure protocol, online payments are secure. The protocol performs its own analyzes and, on the basis of them, preventively blocks suspicious transactions or dishonest sellers. This applies to all banks. All banks recommend that online purchases be made on merchants’ secure websites.

365.bank draws attention to the possibility of generating a one-time payment card, which can be used for online payment. This will avoid the risk of re-unauthorized clearing of funds.

Is it safer for the client to pay online by bank transfer or card? Which method do Slovak banks recommend?

The answers to this question were clear. Both methods of payment on the Internet are sufficiently secure, but it is necessary to pay attention to security principles. The banks also agreed that the advantage of paying by card is the speed of payment and better possibilities for possible complaints.

How much stronger new verification has affected the online payment process from your client’s perspective? What has changed for him?

Most Slovak banks already used the confirmation of payments using the application before the new EU directive came into force. Nothing has changed for clients who have previously confirmed payments in this way. Those who confirmed payments with an SMS code had to get used to verification in the application. Ultimately, it’s even easier because you don’t have to rewrite codes manually now. Just open the application, verify with biometrics, confirm the payment and you’re done.