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Card data threat increases as online payments grow

DUBAI, March 26, 2015

Leading experts in card data security have urged the regional payment industries to come together to tackle an increased threat to the integrity of card data as online and mobile payments grow in the Middle East and North Africa region.

The PCI Security Standards Council has called for merchants, banks and retailers to work together in securing a safe online experience for the region’s consumers, said a statement.

The call for collaboration was made by the PCI Security Standards Council International director Jeremy King, during the recently concluded inaugural Middle East Forum.

The event brought together the regional payments industry’s key players to discuss the issue of card security and understand how best global standards – developed by PCI – can be deployed in the Middle East.

“This is an active, mobile and tech-minded region that is moving quickly to capitalize on the economic opportunity of e-commerce and m-commerce,” said King.

“But as digital payments rise it’s important that we quantify the risks and look to combat the threat with robust measures,” he said.

“The PCI exists to work with industry players across the region and the world, to deploy a set of standards that protects the integrity of data and promotes safe, secure online transactions – fueling growth and opportunity.” he added.

According to data revealed by PCI during the forum, the rise of credit and debit card use in the UAE has added $4.2 billion to the country’s gross domestic product (GDP).

Saudi Arabia’s GDP saw a $4.7 billion rise, with Kuwait and Qatar witnessing more modest rises of $1.2 billion and $0.4 billion respectively.

With more than 175 million internet connected people across the region, mobile commerce is also set to play a significant role in the future of online payments.

A research by Juniper Research has suggested that 11.9 million users in Middle East currently making mobile transactions. Over 80 million people in the Middle East and Africa are expected to turn to mobile banking by 2017.

According to Middle East Payment Services (MEPS), about 56 per cent of consumers in the region are ‘concerned’ about credit card fraud and a lack of consumer confidence was cited as a barrier to realising a significant e-commerce market opportunity.

“The average cost of a data breach rose 15 per cent in 2013 to $3.5 million. The root causes of data breaches differ among countries, but countries in the Middle East, as well as in Germany, had more data breaches caused by malicious or criminal attacks than other parts of the world. It’s a threat that will only increase as e-commerce and m-commerce become more widely adopted,” said King.

Dr Abdul Malek Al Jaber, chairman of MEPS and founder and chairman of Mena App, said: “The cyber security battleground must be contained. Some institutions have started to issue prepaid cards to increase payment security and encourage online retail, but that does not eliminate the threat. The threat can only be eliminated through a collaborative commitment – from merchants, banks, gateway providers and retailers – to a set of robust, globally recognised standards.” - TradeArabia News Service




Tags: data | increase | Security | Online | payment | card | threat |

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